Daily Price Action

GBPNZD: Top Trade Idea of 2019?


Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

GBPNZD could turn out to be one of the better opportunities of 2019.

That’s a bold statement, I know, but the technicals here are very convincing.

I first wrote about this wedge pattern on March 26th.

Back then the pair was trading at 1.9113. It had also just tested wedge support for the first time since its inception on February 15th.

We didn’t know it then, but GBPNZD would spend another month consolidating. Even today the pair is still churning sideways.

However, as I wrote on the 18th of April, the longer this market consolidates, the more explosive the breakout is likely to be.

But even though GBPNZD is still in consolidation mode, something happened this week that’s worth pointing out.

Wednesday’s session tagged a key resistance area at 1.9570. This particular region has been in place since late 2017.

Here it is on the weekly time frame:

GBPNZD weekly resistance level

Notice that this week’s candle is, at least so far, carving a bearish pin bar.

Not only is 1.9570 a critical resistance area, but it’s also very near the 61.8% Fibonacci retracement of the impulsive selloff between October and December of last year.

In fact, the 61.8% Fibonacci lines up at 1.9575. That’s how close it is.

This week’s retest may have been just what sellers needed to see in order to push their agenda next week.

Just keep in mind, though, that sellers still need to clear wedge support to expose downside targets.

I sold GBPNZD earlier this week at 1.9606. I’ve since added to the position to give me an average rate of 1.9587.

I will add to the position following a daily close below wedge support, but not before.

My entry and reasons behind it were discussed at length in the member’s area.

As for key support levels on the way down, I would keep a close eye on both 1.9050 and 1.8630.

But first, GBPNZD sellers need to clear wedge support near 1.9300/20 on a daily closing basis.

Until then, wedge support will continue to attract buyers.

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GBPNZD rising wedge pattern

Leave a Comment:

Justin Bennett says

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These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

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Sina says

I sold around same area as yours Justin and I must say , I am a happy lady today. Took profit though today. Thank you so much for your work.

    Justin Bennett says

    Pleased to hear that! Enjoy your weekend.

Trond says

Hi Justin. Thanks for all your support. I follow you:)
I write to you in the weekle setup. You say it is a bearich pin bar, but it is also a shotting star????

    Justin Bennett says

    Sure, that’s another name for it.

Cornel says

I signed up for the membership some time ago, but I don’t know how to access the member area. Can you help?

    Justin Bennett says

    Hi Cornel, some time ago, indeed! Be sure to check your spam/junk folder. The email was sent quite a while ago. I will resend it now.

Khumbulani says

I like to show me more about analysis market

Tinashe says

I’m pleased to say I sold close to the high on H4, but have since taken profit. 😊

Makhenekhe Frank Mongale says

Great. I have been following your tips for quite some time now. I now have confidence in you. Is just a matter of time before i join. I made up my mind.i have never seen this amount of accuracy. Thank you so much.

    Justin Bennett says

    We look forward to having you join us!

      Sunday Akpan says

      Hi Justin,
      I do follow your oppinion.
      what do you think of GBP/NZD this week?
      Bearish or Bullish?

OGBORO preciouslife says

Thanks Justin bennet

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