GBP/NZD potential short entry at 2.08571

October 18, 2023 11:48 AM PDT | By Invezz

GBP/NZD potential short entry at 2.08571 — Image source: Invezz

GBP/NZD trading strategy

Buy/sell asset: Sell GBP/NZD
Entry price: 2.08571
Stop loss: 2.10102
Leverage: 1x
Take profit 1: 2.07247
Take profit 2: 2.05360
Take profit 3: 2.02963
Timeframe: 1-2 weeks
Maximum profit: 2.69%
Maximum loss: 0.74%

GBP/NZD chart and technical analysis

GBPNZD is making correction after the steep drop in the past couple of weeks and the price will possibly retrace to the 2.08571 resistance level before continuing the bearish trend. The price is still bearish and the market structure is also bearish.

I am considering a 2.08571 resistance level for sell entry as this level has remained a strong support level in the past and it is also around the 0.5 Fibonacci retracement level.

Overall the GBP pairs are dropping against other currencies and this trend will likely remain in the next couple of weeks.

GBP/NZD fundamental analysis

There are no major news events on the British Pound and New Zealand dollar this week. However, high-impact news regarding jobless claims on the US dollar could impact this trade.

If the data turns out positive it will push NZD down and the GBP/NZD price will go up. On the contrary, if the data turns out negative it will strengthen the New Zealand dollar and will push the price of GBP/NZD down.

British Pound to New Zealand dollar trade idea takeaways

GBP/NZD will likely retrace back to the 2.08571 resistance level before heading for new lows.
I am expecting the price will drop to the 2.02963 support level in the coming days.
Multiple take-profit levels have been added to secure profit along the way.
The risk-to-reward ratio on this trade is 1:3.6
The entry and stoploss prices have been placed at secure levels with a high winning probability.
Good luck!

The post GBP/NZD potential short entry at 2.08571 appeared first on Invezz

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