Hello traders! It’s been a while since my last post, but I’ve entered a trade on the GBP/NZD 2HR buying off of a Counter Trend Line Break just below the 1.18 Fibonacci level, and I’m pretty excited about it. Understanding that the market can retrace into the A-B boundary, I’ve set up a grid to level me in buying micro lots at every Fibonacci level, including the B high. My trade has a net closeout of 150 pips with a take profit target at the 1.9106 price level. Take a look at my chart:
So far, I’ve entered in buying at the market (the Counter Trend Line Break) and just below the B high. The market is now approaching a breakeven level to my original entry after retracing to the .236 Fibonacci Level. This means the market should move to the 1.618 if it doesn’t retrace further.
There is a “Double Top” formation above the 1.27 Fibonacci Level, so we could be looking at a market reversal as well. The market has bounced off of my inner trend line and is slowly bouncing as the market consolidates into a pennant pattern.
This consolidation is due to the RBNZ Interest Rate Decision on Wednesday, May 10 followed by Bank of England’s own decisions on their Interest Rates on Thursday, May 11.
The market could be whipped back and forth before moving back toward the 1.618. If I reach break even before tomorrow’s interest rate decision, I may exit and look for a re-entry point buying or selling based on the news after the BOE’s Announcement on Thursday. If I’m not at breakeven, I will stay in and monitor this trade until I either breakeven or reach my net close out of 150 pips.