Potential Bull Flag Idea

My strategy on the GBP is anticipating bull flag set ups. In the GBP/NZD i am looking for a move down to test 50% fib before reversing higher to the 1.86 target of the pattern completion. We have come into a channel line resistance and as such needs to be respected and therefore be open to a move back into the range, however that doesn't fit with my overall GBP outlook.

I will post longer term analysis below

Commentaire:

Another potential GBP inverse H&S pattern targeting the 1.90 area. The 38.2 retracement from the Brexit move lower comes in at the early 1.87 mark which also coincides with the 61.8 extension from the last move lower in December.

Although we have just come into channel resistance on the chart and not ideal to be agressively long here, we have broken key resistance just below the 1.80 level which should now provide new support.

Apologies if the chart looks a little messy, i just wanted to highlight the key fibs

Good Luck