GBPNZD: Profitable Long Trade and New Short Trade
British Pound/New Zealand Dollar FX:GBPNZD
Let’s look at this wonderful pair! GBPNZD could give us a very profitable trade based on a trend reversal signal. When the price broke SMA200, and we got a new swing high above that line, we could use a pending order for buying. The stop orders for the long position could be placed below SMA100, and the profit target could be at 1.98000 resistance. The price moved above that swing high and activated that trade. After that, the price moved up and reached the profit target. I did not post about that trading opportunity, but you can use the same setup by yourself in any market and timeframe.
Now, we have a selling opportunity. The price reached the resistance zone . The price diverged with RSI and MACD . It is a bearish divergence which gives us a trend reversal signal. We can expect a pullback toward SMA50, SMA100, and 1.93000 support.
Here is an example of a sell trade:
Sell below 1.97450
Sop above 1.98650
Profit Target at 1.93150
Risk per trade must be no more than 1-2% from the capital. It is possible to use a trailing stop.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov