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GBP/NZD Consolidates in a Symmetrical Triangle After a Fall

The pound had experienced a rather strong rally against the New Zealand dollar from the beginning of 2017 through the middle of May. It then entered a similarly rapid downtrend, which stalled near the end of June. Since then, the currency pair entered a consolidation phase, which has now took a form of a symmetrical triangle pattern.

That triangle is marked with the yellow lines on the chart screenshot below. The cyan line is my potential breakout entry level. It was placed at 10% of the triangle’s base height below the lower border. The green line is my potential take-profit level, which is positioned at 100% of the same distance. I will set my stop-loss to the high of the breakout candle or to the high of the preceding candle if the breakout one trades mostly outside the triangle. I will ignore an upward breakout from this formation because a symmetrical triangle is a trend continuation pattern. You can click on the image to see a full-size screenshot:

GBP/NZD - Symmetrical Triangle Pattern on Daily Chart as of 2017-08-20

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/NZD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this symmetrical triangle on the GBP/NZD chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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