GBPNZD took a strong Bearish move on the H4 chart. Yesterday’s Daily candle came out as a Bearish candle as well. However, if we have a close look, then we see that the candle finished within the day before yesterday’s lower low. That is an indication that the price might have found a strong level of Support. The H4 chart suggests that the price might end up producing a Double Bottom. If that really happens, then the pair might offer us a long entry. Let us have a look at the H4 GBPNZD chart.
GBPNZD Price Action Analysis – 23rd Oct 2018
The level of 1.92240 area is the level of Support here. On the other hand, the level of 1.98500 is the level, which has to be broken to confirm that it actually is a Double Bottom. If we have an H4 breakout at the level of 1.98500, then the price would head towards the level of 2.02535. Let us have a look at the summary of the trade…
- Buy Stop Order: 1.98500
- Stop loss: 1.92240
- Take Profit: 2.02535
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The Double Bottom looks good where the Support line and the Neckline are straight Horizontal lines. We often find a Double Top or a Double Bottom Support level or the Neckline level to be adjusted a little. Here it is a straight Horizontal line. The reason for this might be on its way there is a big round number to be breached. It is 2.00000. Thus, traders need to be very sure that they get a crystal clear Double Bottom here.
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