Happy weekend to every1. Weekend chart time has once again exposed two hotter than spice setups that should net us good pips in the days and weeks to come. They are GBPNZD and GBPCAD short trade. GBPNZD; Personally, i would consider this my trade of the year. A quick glance at this pair reveals a dominant bear trend. however, price bounced significantly upon finding a bottom @ 1.7704 several months ago. After making a high @ 1.9931, price got itself stuck in a consolidation and now we have a perfect head and shoulder formation on the daily time frame suggesting further dip.Upon plotting a price projection, 1.8708 showed up as potential area that price could fall to if the pattern identified is anything to go by. What makes this region even more key is that it lines up perfectly with the 61.8 fib retracement of the whole rise from the low of 1.7704 to the high of 1.9931. As speculators, it would amount to a market sin if we shut our eyes against a setup like this, Already i and a few other folks are in the train but if u arent already in, the setup is still very much in its infancy. You can still hop in with a stop just 20pips above last weeks high for a 900pip journey down south. As always, patience to stay with the trend would be key. GBPCAD; This trade idea shouldnt be new to FOREX LIKEMINDERS. Its a trade we have kept track on for a while now. A look at the daily time frame reveals a range bound market after an uptrend. Interestingly, price made it to the top of the range, pierced it a bit and fell right back into the trading range again three daily sessions ago. We scaled-in on our short positions at that high and has since been a part of the drop. That price should get back to the bottom of the range is almost a mathematical certainty but given cables imminent weakness and the obvious divergence on the daily TF, were confident that a range expansion which should take the pair all the way down to the 23.6 fib retracement of the entire rise from the low of 1.5242 to the high of 1.8666 @ 1.7885 is in the works. We hope to take 1st profit at the bottom of the daily range, then move stops to break-even on the second leg for a fatter reward. There u have it!, our two cents on those two. Attached to this post are the corresponding charts for educational purpose. Inputs are welcome. Enjoy the rest of your weekend and a pip full month awaits yall.
Posted on: Sat, 19 Jul 2014 10:19:34 +0000
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