This trade was entered on Friday with 90 pips in profit after we identified pin bar signal entry. We wanted to hold this longer but did not want to take on weekend risk.
We took the trade as it seemed like GBPNZD broke below short term upward trend line, coupled with bearish engulfing candle on 4h candle. However, this was a counter trend move, which led to price not moving in our favor. We were stopped out at 2.1555.
Price touched resistance 2.16 and gave a reversal signal. Unfortunately, it failed to break above 2.16 and went against my position. For this position, net loss is 0.76%
GBPNZD is still moving in our favor and it is currently at 2.16 resistance level. It is uncertain if it will break above 2.16 but looking at NZDUSD, NZDJPY, GBPUSD and GBPJPY, GBPNZD looks like it will be able to break above. At the moment, i will hold on to my position and see how things go.
I went long on GBPNZD at 2.1525, with stop loss at 2.146, take profit at 2.2 and risk reward is 7.
With GBPJPY and GBPUSD moving higher, i believe there is strength in GBP. NZD is also relatively weak as seen from NZDUSD, NZDJPY and AUDNZD. Hence, i have decided to long GBPNZD close to 2.15 which is a support level. There is also a pin bar signal for entry close to 2.15 support. One thing i hate about GBPNZD is high spread. If you can, avoid this pair to save yourself from paying high spread.
Take note of GBPUSD rate decision announcement which is coming out in 5mins. Do expect GBP volatility, current forecast for rate decision is at 0.5%
The future belongs to those who believe in the beauty of their dreams.