Friday’s trading session had pretty low volatility across the board, especially quiet for the GBPNZD cross pair. The daily chart stalled and churned about a critical level for this well established up trend.
The daily candle closed as an inside day which we could use to capture breakouts.
Price is sitting on a bullish ‘hot spot’, where a lot of technical factors come together to support the trade idea. In this case we have the old resistance acting as new support, the mean value also supporting the market, a stable bullish up trend, and the inside day which offers the frame work to build breakout orders off.
This is a NZD pair, a currency that can become very active during the Asia session, so we may see early breakouts. Just be careful of any Asia breakout traps that could lead to a sharp reversal in the London session. Ultimately, we’re looking for bullish breakouts and trend continuation here.