At the moment, an encouraging buy set up is developing in the 4HR chart on the GBPNZD pair. To begin with, there is a bullish divergence panning out between price action and stochastics. Then secondly, that double bar reversal pattern which is forming at the support zone-check 11th July, 2016 in the 4HR chart. Also both stochastics and volumes have a positive slope which means there are more long positions which drive prices up.
Fundamentally, we had positive CPI data from the UK today and tomorrow we expect positive employment data and this pair to trend even higher.
In my opinion, it will be a good opportunity to initiate a pending order right after the resistance zone at 1.8050 or even take risk now and initiate a position though with a tight 70 pip stop loss. Our plan for this will therefore be as follows:
Exercise patience and execute as follows:
Buy Stop: 1.8050
TP: 1.89-Resistance zone in the daily chart.
Buy: 1.7950-in the 1 hour chart
Have a good trading day.