GBPNZD : Trading the Move Lower

On May 25 2020 I posted on social media Stocktwits/Twitter @AidanFX  “GBPNZD will be watching for selling opportunities”. GBPNZD has been trending lower since April 2020 so the clear path will be to trade with the trend and not against it. 

The chart below was also posted on social media StockTwits/Twitter @AidanFX May 25 2020 showing that bearish divergence market patterns (purple) were clearly visible. The first bearish divergence pattern (regular divergence) was calling for the  possible reversal lower and the 2nd bearish divergence pattern (hidden divergence) was confirming the continuation of the trend lower. I called for traders to SELL GBPNZD and only a move above 2.0037 will invalidate the SELL trade setup. More downside confirmation would be if price broke below the black trend line and most importantly if price broke below the light blue zone where it would confirm a new lower low sequence has started and where more bears will enter the market and push the pair lower.

GBPNZD 1 Hour Chart 5.25.2020

GBPNZD, forex, trading, bearish market pattern, elliottwave, @AidanFX

GBPNZD holds below the 2.0037 invalidation level, breaks below the black trend line and below the light blue zone confirming the downside move. On May 26/2020 price reaches the 1:3 RR target for +166 pips from 1.9986 SELL entry level. If you followed me on Twitter/Stocktwits @AidanFX you too could have caught the GBPNZD move lower.

GBPNZD 1 Hour Chart 5.26.2020

GBPNZD, forex, trading, elliottwave, bearish market patterns, @AidanFX

Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade.  Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX  or chat me on Skype > EWF Aidan Chan

*** Always use proper risk/money management according to your account size ***

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