GBP/NZD Long Opportunity at 2.2535

Last updated 2/5/2010 8:10 PM EST (GMT -5) 9 Comments

Forex Trading involves high risks, with the potential for substantial losses and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

Bradley W. Gareiss

Technical Analyst, GFT

A bullish Gartley pattern is emerging on the GBP/NZD 1hr Chart. The pattern still has to drop fairly far to complete, but this is a strong pattern worth posting. The trade would enter near the bullish trend line on the 8hr Chart, which increases the odds of a successful trade. Our main concern at this point is the CD is dropping with a steeper slope than AB. We will look for the CD leg to slow down before entering this trade.

We are looking to buy the GBP/NZD if it falls to 2.2535 (Point D). Point D is located at the convergence of the following points:

We will now go over what to watch for assuming the pair continues falling toward our entry at 2.2535. If the pair moves down rapidly and has long bars near point D, we will not enter the trade. Also, if the pair comes within 20 pips of reaching our entry, does not enter, and reaches T1 before entering, the trade is invalid. The trade is also invalid if the pair rises above 2.2890 before hitting our entry.

To recap, we will look to buy the GBP/NZD at 2.2535 with our stop placed at 2.2457. Our initial profit target is 2.2652 (38.2% of CD).

• • 
    
  • 8hr Chart - Bullish trend line.
  • 
    
  • 1hr Chart - Bullish Gartley; buy at 2.2535.

Comments (9)

spunky

February 09, 2010 at 08:15 AM ET

thanks Brad ; ya convinced me to switch over and start learning fib and ABCD patterns, nice call

regards
Brad

bgareiss

February 09, 2010 at 01:19 PM ET

Good luck as you continue to learn. Brad

Jeff Burke

February 07, 2010 at 07:33 PM ET

I'm going to give it a whirl.

bgareiss

February 08, 2010 at 02:01 PM ET

We just missed the entry before shooting up. The trade is now invalidated before entry. Brad

Jeff Burke

February 08, 2010 at 05:32 PM ET

Boris.....I tried you GBP/NZD trade numbers and they worked beautifully.......thanks......Jeff

Jeff Burke

February 08, 2010 at 05:35 PM ET

I meant, Brad, ........I had to be quick on the trigger and pull in the numbers a tad.......but it was great.....Jeff

bgareiss

February 08, 2010 at 05:38 PM ET

Oh, ok. I am glad it worked out. Brad

NeoFX

February 08, 2010 at 02:00 PM ET

Hello Brad,

I had a quick question regarding GBP/AUD. I'd like to sell at/around the 1.8138 area---the 61.8% and also the right shoulder of what looks like a head and shoulder formation on 2 hr chart. prev daily engulfing bearish candle also adds to my odds in my opinion. I'd sell there and target 1.7915 right before the 38% retracement of big A/B on 8hr chart.

any comments on this? anything that I may be missing here?

thanks
R

bgareiss

February 08, 2010 at 02:10 PM ET

If that fits your trading plan, go for it. However, I would want to see how the pair behaves on the way up assuming it rises to 1.8139. I believe in placing trades for the same basic reasons every time, so that is why I would have to wait. Also, I would check to make there isn't an announcement right before you enter. There is a major AUD announcement coming up tomorrow night. Good luck. Brad

Add Your Comment

Please login to post a comment or sign up for an FX360® account.

Loading...