Trade Idea GBP/NZD
Noticed possible Cup & Handle formation on Daily chart of GBP/NZD. After finding resistance @1.9800 pair is moving down in channel that can be clearly seen on 4 hour chart. When pair falls bellow support level 1.9600, which is also 38.2% Fibonacci retracement of previous up move, I will be looking to buy pair on 50% of that same Fibonacci around 1.9500 area. Stop loss will be just bellow 78.6% and Take profit right bellow historic Support/Resistance line of 2.050, which gives 1:5 Risk to reward. Depth of Cup is some 200 pips more then my Take profit mark but so I money management will be applied as well in order to try and capture those pips as well is pair brakes S/R line.
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