Entering a currency pair that has been falling since Q3 2015 with retracement to the 1.9 Monthly level, followed by 3 successive months of falling my monthly bias was bearish.
WEEKLY: Looking at the weekly chart we can observe that price has fallen quite well from 2015 to 2016, bouncing off the 1.7 monthly level.
Price began to retrace and rally up towards the 1.9 monthly level, showing that it cannot break through price began to fall. This forms our downward trendline which also adds to my bias of shorting the pair.
DAILY: The GBP/NZD daily timeframe shows where price has recently been ranging in a box range. This followed up with break out of the box range to the downside. I didn't immediately short the pair, as we would like to see a break-retest of the 1.74400 support for a short position. This would confirm a further breakout.
SL: Just above the previous swing high
WEEKLY: Looking at the weekly chart we can observe that price has fallen quite well from 2015 to 2016, bouncing off the 1.7 monthly level.
Price began to retrace and rally up towards the 1.9 monthly level, showing that it cannot break through price began to fall. This forms our downward trendline which also adds to my bias of shorting the pair.
DAILY: The GBP/NZD daily timeframe shows where price has recently been ranging in a box range. This followed up with break out of the box range to the downside. I didn't immediately short the pair, as we would like to see a break-retest of the 1.74400 support for a short position. This would confirm a further breakout.
SL: Just above the previous swing high