GBPNZD currency pair on a chart 4-hour is in an uptrend. The price has gone up to new highs and reached the vicinity of the key resistance at 1.7950. From there began a correction, which can be used for opening long positions

0212-gbpnzd

As shown on the graph M30 , the first rebound appeared on the level of support at 1.7710. Currently continues its correction, which may (but need not) lead to the higher high – higher low.

In the above scenario we can consider  taking a long position. The potential running position, part can be closed at the level of 1R, while remaining should secure at break-even and allow to “work” further.

Described setup will be invalid if the price closes below the support at 1.7710. Then the next lows and highs suggesting the end of the correction can be sought at lower levels, up to 66% of the abolition movement shown in the chart below.

0212-gbpnzd-2

 

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