Free Profitable Forex Newsletter
Hey! This is Philip with this week's market update of the Free Profitable Forex Newsletter!
I was looking through the Forex charts as usual and noticed something that’s too good to miss (at least from a technical analysis point of view). That is a “handsome” bullish setup on the GBPNZD cross.
Now, knowing GBPNZD’s character, there is probably no reason for FOMO and no need to rush to get on board with this trade. While GBPNZD is a highly trending pair, quite often, new trends don’t start as soon as the old one ends. Additionally, the volatility can make it tricky to determine stop-loss levels that provide good protection while avoiding premature stop-outs.
With that in mind, let’s now look at the specific chart and our trading plan for it below.
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The key point for trading this GBPNZD setup is that we are going to watch NZDUSD just as much, if not more, than the GBPNZD chart itself.
In particular, we need NZDUSD to complete a bearish breakout of its recent ascending channel formation (see chart below). Once that happens, GBPNZD should be liberated to skyrocket higher.
The main logic behind this way of setting our trading plan is that GBP is likely to remain relatively stronger than the US dollar over the medium term; therefore, it would be a better pick to express bullishness. And if NZDUSD turns and breaks the support trendline, then NZD should experience some further weakness that’s been long overdue. NZDUSD can quickly move at least to the 0.70 area under this scenario and fairly likely toward the 0.68 area
too, where it will encounter some stronger support. Such developments on NZDUSD could set GBPNZD up for a nice rally, just as we need.
Finally, remember that a bearish breakout on NZDUSD is a prerequisite condition for this GBPNZD setup to be valid. Furthermore, the bullish dynamics of the GBPUSD (pound/dollar) uptrend must remain intact also. Only then we’ll have a solid basis for GBPNZD to move notably higher and give us a good opportunity to capitalize on.
We won’t send specific price levels for the entry, stop, or targets this time. We’ll revisit this trade setup in the following weeks, and if it is still valid, we’ll look at specific price levels at that time.
Trade signals from the past week
TOTAL: 0 pips in the past week
TOTAL: +3900 pips profit since October 1, 2018
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Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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