The GBP/NZD gave a triangle trend line breakout during the week that could suggest a potential move of 1,200 pips down to the next major triangle trend line support. As suggested though, price has stalled at some support from a recent ‘Double Bottom’ and in this post I suggest the levels to watch in the coming sessions.
GBP/NZD 4hr: the G/N broke down through a triangle trend line during the week suggesting the start of a potential 1,200 pip triangle move. The major S/R level of 2.10 offered a bit of resistance but was also eventually broken. Price action has stalled at a recent ‘Double Bottom’ though now near the 2.065 region. Any failure to continue on below this level would suggest the major 2.10 level might be tested again.
GBP/NZD daily: the daily candle closed as a bullish-reversal ‘Hammer’ style candle off the ‘Double Bottom’ 2.065 support level and so we could be in for some re-tracement here. If so, keep an eye on the 2.10 level as, given this level is such a major S/r region, this could be tested before any potential bearish continuation:
GBP/NZD weekly: keep note of the fact that the 1,200 pip triangle breakout move, if it evolves, would take price down to the weekly chart’s triangle support trend line. That what we call confluence!
GBP/NZD monthly: the monthly candle has closed as a bearish candle and below the key S/R level of 2.10 which, in itself, is also bearish. The monthly charts below show how significant this S/R level has been over recent years:
Summary: the GBP/NZD has made a bearish monthly close below the 2.10 S/R level. Price action has stalled at recent ‘Double Bottom’ support near 2.065 and this is the level to watch in coming sessions:
- Any close and hold BELOW the Double Bottom level of 2.065 would suggest a move to the weekly chart’s triangle support trend line and completion of the current triangle breakdown that could be worth 1,200 pips.
- Any hold ABOVE the Double Bottom level of 2.065 would suggest a move back up to test the key 2.10 S/R level before potential triangle breakdown continuation.
The post GBP/NZD: triangle b/o update. appeared first on www.forextell.com.