GBPNZD POTENTIAL SHORT @ ~2.05400 OR ~2.07100
GBPNZD has been working its way into a descending triangle for a while and should be coming to the end of it now.
Descending triangles at the end of big extended rallies usually lead to a collapse in prices.
We should a rally soon. Hopefully to the top of the triangle so we can get more pips as it breaks the overly tested area @ ~2.03400.
The supply zone @ ~2.05400 happens to be an intermediate supply zone within the bigger picture zone. There should hopefully be enough sellers to create an imbalance in the market at that price region.
With a 50-pip risk on this trade, you'd be looking for at least a reward of 7X risk to the bottom of the triangle and better if it breaks out
Descending triangles at the end of big extended rallies usually lead to a collapse in prices.
We should a rally soon. Hopefully to the top of the triangle so we can get more pips as it breaks the overly tested area @ ~2.03400.
The supply zone @ ~2.05400 happens to be an intermediate supply zone within the bigger picture zone. There should hopefully be enough sellers to create an imbalance in the market at that price region.
With a 50-pip risk on this trade, you'd be looking for at least a reward of 7X risk to the bottom of the triangle and better if it breaks out