In weekly, inverse head and shoulders (very broad shoulders) formed. Huge bottoming phase since 2011. Price seems to have finally broken the neckline. See if price can close above the neckline. Will look for buy signal in daily chart in the coming weeks.
Thanks for this Casey, I like the analysis a great deal. A couple of points GBPNZD is oversold on the daily, would you wait for that to resolve? and secondly the measure from the bottom of the head projected to the neckline goes above the resistance you have identified at 2.08311, with that in mind what would you take as a target for this trade?
Casey_Yeo
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You are welcome Steve. Glad you like it.
On your first point, do you mean GBPNZD is overbought on daily, and not oversold? I will wait for pullbacks in daily.
On your second point, I do not trade off classical patterns like H&S or double bottom/top, etc. But I use them as piece of information and indication of possible reversals in trend.
The market has closed above the level you mentioned above.
Next resistance is around 2.2200.
MuathAlBulbul
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Thank you for the great analysis. I've been looking at this pair for a long time, although it follows the book mostly, but it moves insanely per day.
Can you update us when you find a good buying opportunity? Thanks a lot.
Also, I had a question, why does anything related to GBP move in great pips per day?
Casey_Yeo
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You are welcome. Glad you like the analysis.
I have no idea as to the real reasons for the huge GBP move.
I can only think of the UK election already out of the way, so goes the uncertainty.
The other is the expectation of BOE rate increase. I doubt BOE will increase rate before the Fed. Just my personal thought based on my limited knowledge and experience.
Anyway I prefer to let the price action and chart to show me the way.
mkdeep04
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yes looking very bullish... lvan... eyeing possible cup pattern at 2.2 area... combination hs & cup... will be testy
IvanLabrie
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I don't trade those patterns, too prone to subjectiveness.
I've been trading shorter term swings in this trend, I think it's a confirmed bullish trend now, but will have to wait for a correction to enter.
IvanLabrie
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Potentially a very strong bullish trend forming here.