In our last report about the GBP/NZD pair we said that we prefer the positive scenario for the pair, so we bought it around 1.8120 and took our profit at the resistance level 1.8362 with +240 pips as profit from one trade. The pair didn’t form a reversal pattern at the resistance level and it rose directly to record its highest level in four months at 1.8721.
The pair is still trading in a series of impulse waves above the trend line after the correction wave, while the prices are trading steadily above the broken level and the head of the next resistance area at 1.8930. However, we can see the pair is forming a reversal pattern now (a double top) - it might lead the pair to decline in the next days if the prices break the neckline below 1.8290. The moving average is still trading below the price, so it has supported the positive vision till now.
The Next Few Days
Based on this classical analysis of the pair we can take a buy position now at the current level at 1.8455 and take our profit at 1.8860. We need to wait to see what the prices will do at the resistance level, and keep our stop-loss level at 1.8290 at the neckline, taking a sell position at these levels and a T/P at 1.7910 at the support level.
This week we saw the negative PMI’s data from Manufacturing and Construction and tomorrow is the most important number is released - the Service PMI, so we will know more about how the price will move tomorrow to make money from this movement.
