Sophia Todorova is the host of the live trading room for the London session.She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.
If you are as passionate about trading as I am, then you may have found yourself perusing through charts on the weekends, and feeling slightly guilty about it 
. I think it might not be too bad, as long as you keep things in perspective. Anyway, I thought I’d let you, our faithful readers know that there is the possibility of a great trading opportunity setting up on the gbpnzd currency pair. I know that this is one of the exotic pairs that many traders tend to overlook. However, I have traded this in the past and it does move an awful lot. It seems I am seeing reversals all over the charts lately, and that is what I think might be setting up on the gbpnzd daily timeframe.
As this is a daily timeframe, the setup might take some time to work out. This is why I think that it is good to bring it to your attention over the weekend, so that you can watch it during the coming week as a means of finding some good trade setups.
By taking a look at the daily chart below, you will see that there was a break above the down-sloping trendline. Price went up to 2.2020 to test a counter-trendline located there. The original resistance zone at 2.1750 got broken. It was a hard feat accomplishing this, and that is evidenced by the numerous double tops/spikes in the 2.1750 region. At the close of the market on Friday, my charts register a rate of 2.1066 against the main down trendline. A look to the left will reveal what appears to be the left shoulder of the possible bullish reversal.
Trading Strategy
Look out for trendline breaks on the hrly and 15 minute timeframes, and look to go long at after retests. I’d like to repeat that this might take some time to complete its setup, as the daily trendline might get tested more than once. Therefore, when entering on the 1 hr and 15 minute charts, make sure that you take some profit as soon as you have a reasonable amount of pips, while possibly allowing a portion to run to 2.1650, where you would exit ahead of the tremendous resistance ahead. This is marked by the green horizontal line. If this setup works out there is more than 600 pips to be had. Stop-losses will depend on entry, so make sure that you use well-placed stops out of the normal swings of the market, while at the same time watching your position sizing.
Thank you for taking the time to read this article. I encourage you to post your comments and opinions as I look forward to discussing the setup, regardless of your take on it. Have a great weekend, and see you all next week, as we resume this very exciting job of ours
This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
Anotherpair worth taking a look at is the usdcad. I posted this article on Friday: http://www.winnersedgetrading.com/usdcad-technical-analysis-trade-setup/
If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
Other useful blogs:
Forex Crunch: Indicators- 3 Reasons Why They Will Hurt Your Trading
The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
