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GBP/NZD to Resume Downtrend at 1.9455?

Last updated 1/16/2012 8:01 PM EST (GMT -5) 0 Comments - Add your comment

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Bradley W. Gareiss

Technical Analyst, GFT

A bearish Gartley pattern is currently forming on the GBP/NZD 2hr Chart below.  The pattern has solid price symmetry, and so far the time symmetry is ok.  For proper time symmetry, we would like the CD leg to continue rising with approximately the same slope as the AB leg.  The trade would also enter near the bearish trend line on the 4hr Chart.  Furthermore, the trade would enter just below the 10 day exponential moving average.  The trade would be invalidated if it fell to 1.9227 before entering. 

We are looking to sell the GBP/NZD if it rises to 1.9455 (Point D).  Point D is located at the convergence of the following points:

To recap, we will look to sell the GBP/NZD at 1.9455 with our stop placed at 1.9498.  Our initial profit target is 1.9391 (38.2% of CD).

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  • 4hr Chart - Trade would enter near the bearish trend line.
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  • 2hr Chart - Bearish Gartley; sell at 1.9455.

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