TRADE OF THE WEEK | Classic Triangle Breakout
Here is a great short rally that we caught with my Top-Down trading strategy this week.
The pair reached a major daily structure and formed a head and shoulders pattern on that on hourly.
GBPNZD is trading within a wide horizontal trading range on a daily.
1.962 - 1.967 is its support.
2.005 - 2.008 is its resistance.
Approaching the range's upper boundary the price formed a cute dodji candle on a daily.
On hourly time frame, the pair formed a head and shoulders pattern.
1.99 - 1.993 is its neckline.
To sell with a confirmation, wait for a neckline breakout (hourly candle close below the yellow area).
Goals will be 1.98/1.97
In case of a bullish violation of a head level, the setup will be invalid!