The pair is not traded much by retail FX traders but its one of the pairs I really I liked to trade for a very long time, it’s volatile and when it moves it moves really fast.
GBPNZD was trading inside a channel for a long time, since mid-August of 2016 and it touched the channel upper and lower lines several times but always got rejected.
Now its again touching the lower line and there are several clues that this time it will break the channel, if you do an analysis about GBP you will notice its quite weak now against all other currencies due to Brexit despite getting a deal with EU recently.
One good thing about this bet is all longer timeframes are aligning with each other, monthly, weekly, and daily are all bearish:
To get in we have several options:
- The channel is already broken by the last major bearish weekly candle, and we can go in now
- We will wait for another bearish weekly candle and if it closed below the low of previous bullish weekly candle then we will jump in
- We place a sell stop order below the low of previous week bullish candle
Choose the one that best suits you and for stop and target: