Hi, y’all! I got a bit late because I was busy doing so many projects. I also had to finish a minor errand but I’m here already. That’s all that matters.
Let’s start with the first FX Chart Analysis for the week.
GBPNZD finished last week’s candle with a big outside candle, rejecting prices below the previous weekly resistance.
The outside candle proved the weekly level’s role as a swing level. The week opened with a gap that may get filled.
A good way to take of the outside candle using the gap is to put a retracement buy order somewhere in the middle of the gap.
If the gap does get filled completely, it will trigger the retracement order. Retracement orders are done to minimize the potential risk of a setup
The trade will offer a good reward if price moves bullish again after a retracement and continues to form a big swing, which may last for a good amount of time, basing on how much room the chart has for movement towards higher prices.