Friday, October 31, 2014

GBPNZD Resistance Update




Talking Points



  • GBPNZD Opens in a 105 pip range


  • Range Resistance Sits at 2.0446


  • Bearish Reversals Signaled Under 2.0289


GBPNZD 30Minute Chart


GBPNZD Resistance Update


(Created using FXCM’s Marketscope 2.0 charts)



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The GBPNZD has opened the US Trading session traversing inside of a 105 pip range. Price has moved across the range twice so far, and the GBPNZD is currently sitting near range resistance found at the R3 pivot at 2.0446. In the event that price moves back inside of the trading range, reversal traders can begin to target lines of support. Today’s S3 pivot completes the 105 pip range seen above, and can be found at 2.0341.



In the event that price does not move back into the range, but instead reaches the R4 pivot at 2.0498, the GBPNZD would be considered a prime candidate for a breakout. A breakout above this value would signal the creation of a higher high, along with a shift in the market towards bullish momentum. Likewise a reversal in price, under the S4 support pivot at 2.0289, would show an increase in bearish momentum towards a lower low. In either breakout scenario, range trades should be concluded and traders can begin to identify positioning based off of the markets given direction.


GBPNZD Resistance Update



Are you new to trading with pivot points? To become more familiar with Camarill Pivots and how to use them for day trading FX Reversals, check out the suggested reading links below. This way you can continue your trading education, while working towards actively incorporating pivot points into your selected day trading strategy.



Suggested Reading:



The Pivot Point Cheat Sheet



Trading Intraday Market Reversals



Scalping with Pivot Points



CCI and Camarilla Pivots



—Written by Walker England, Trading Instructor



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GBPNZD Resistance Update

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