Nice Pin Bar on the GBPNZD 8HR

Hello all I hope you are having a great Sunday. I have taken some time to look over my charts today to get ready for another trading week and thought I would draw your attention to the very nice bearish pin bar that has formed at a key resistance level of 1.7800 on the GbpNzd 8 hour chart.

20130414_GbpNzd

As you can see from the chart price has been quite bearish as of late. Not only has this bearish pin bar formed at a key resistance level but it also happens to be a round number which adds to the importance of this level. Of course there are no guarantees in forex, and price may just may reverse, push higher and bust through the 1.7800 level. However, the price action story here would indicate to me that there is a good chance this resistance level will hold and price may continue lower, offering some opportunity.

I plan to get into this trade at the break of the pin bar and set my stop approx 15 pips above the resistance level. The next major support level appears to be at the 1.7769 so this is where I would be looking to either take profit, or move my stop to break even and take some profit.

Hopefully there will not be a large gap when the market opens in a few hours that messes up the trade, but we will have to wait and see.

Well I hope you all enjoyed this quick post, and be sure to comment, share and like if you did as it is greatly appreciated 🙂

Once again information on this blog is meant for educational and informational purposes only, and should not be taken as trading advice.

Cheers.

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