MARKET PHASE
GBPNZD is in a long term downtrend (daily) with a short term corrective structure that has been taking place (4 hour).
AREA OF VALUE
Price continued to break new highs within this corrective structure. Eventually, price reached an area where sellers stepped in, resulting in a buildup of liquidity (buy stops, longs, short stop losses) above the corrective structure swing highs. Price violently moved up to trigger the buy stops (liquidity) to pair against the sell orders needed to take price down. Price then started it's initial move down and actually sustained selling pressure for some time. Due to the velocity of the downward move, priced gapped orders around 2.11584. Price may climb back to 2.11584, before selling off during the London session (News: Inflation Data). Therefore, we've setup a sell limit order with the following parameters:
TRADE
Sell Limit: 2.11584
Stop Loss: 2.12124
Take Profit: 2.10504
GBPNZD is in a long term downtrend (daily) with a short term corrective structure that has been taking place (4 hour).
AREA OF VALUE
Price continued to break new highs within this corrective structure. Eventually, price reached an area where sellers stepped in, resulting in a buildup of liquidity (buy stops, longs, short stop losses) above the corrective structure swing highs. Price violently moved up to trigger the buy stops (liquidity) to pair against the sell orders needed to take price down. Price then started it's initial move down and actually sustained selling pressure for some time. Due to the velocity of the downward move, priced gapped orders around 2.11584. Price may climb back to 2.11584, before selling off during the London session (News: Inflation Data). Therefore, we've setup a sell limit order with the following parameters:
TRADE
Sell Limit: 2.11584
Stop Loss: 2.12124
Take Profit: 2.10504