Dear Daily Price Action Setup Traders

Today was marked by some hesitance for the currency pair I wrote about yesterday. For those of you that are in a long position like me, I would say that I do not see a reason of getting out of this trade. Even more than that- I believe that another GBP pair is set for a rise.

The GBP/NZD pair is showing all of the characteristics that are essential for a bullish move from a “daily price action setup” point of view. There is a large bullish candle that formed during Monday’s session. Today’s daily candle showed some hesitation when testing the 2.0250 support level. This level was met by a fresh set of buyers. They managed to push the price back up to 2.0400. The daily candle that formed is similar to a long-legged doji. It also shares similar characteristics with a pin bar. And as such is acting as a bullish catalyst.

I would be looking to enter in a long position around the level of 2.0350. My stop loss would be placed just under the 2.0220 level. I will be targeting 2.0650 and then depending on the price action 2.1000.

Happy Trading,

Colibri Trader