If you want to be successful in Forex trading, you have to follow your rules and your trusted analysis, especially if you use classical methods of analysis. In our last report about the GBP/NZD pair we recommended buying the pair for several reasons: lthe pair had reached further than 61.8% Fibonacci and was trading above the ascending trend line, and there also was a double bottom pattern, all of which are signs which told us to buy the pair. This is why we bought it at 1.7700 - we have taken our profit at 1.7850. Then we bought the pair again after breaking the neckline at 1.7885 and the prices hit our target today at 1.8230.
The pair is now trading around 38.2% Fibonacci in a series of impulse waves, after it reached 1.7500 - close to the upside trend line. The pair has a resistance area at 1.8362 which the pair is expected to reach in the next few days. That is in case the pair is still trading above the support area at 1.7906 and the moving average 50. The Stochastic indicator started giving us a sell signal, which is a sign that the pair will make a downward correction movement.
The Next Few Days
From this classical analysis of the pair we can’t take any positions now at the current level. We can buy the GBP/NZD at the support level 1.7906 or sell at the resistance level 1.8362, but we prefer the buying scenario for the next trading days. In effect, we can take a buy position now with a small volume and keep our target at 1.8362.
This week the market has some hot news from the UK like the CPI and the official bank rate next Thursday.
