Nick Nasad
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GBP/NZD: Break of Support at 1.9850 Opens Up H&S Measured Move Target

In another look at a GBP cross, this time the GBP/NZD we see a topping pattern that has taken about 3 sessions to fully form, with the pair slicing through its support over the last few hours and holding that drop.

  • The topping action now resembles a H&S pattern with the heat at 2.0065 and the neckline at 1.9850, which amounts to about 200 pips if we project a measured move from the neckline down.
  • That targets about the 1.9655 area, and there is some important pivots there from August 20th, that could be an interesting profit target.
  • An invalidation of this trade idea/possible set-up comes if we move back above the neckline at 1.9850.
  • We may also want to see if there is a throwback to the old level of support at 1.9850 and see if there is a "second chance" opportunity to use that level as resistance.

- Nick