Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Trendline Trading: GBP NZD

Trendline Trading: GBP NZD

Walker England, Forex Trading Instructor

Trading trends is an excellent method of execution for traders looking to take advantage of the long term momentum of a currency pair. Currently, one of the strongest trends developing in the Forex market has been the GBPNZD. The pair has dropped as much as 1773 pips from its May 2012 high at 2.1058. The pair at present is trading 215 pips higher, off its June low of 1.9285. As the pair moves against the prevailing trend, traders will look for fresh technical levels to enter new sell positions. One of the ways we can do this is by finding resistance in a downtrend, using a trend line.

Pictured below is an 8Hour chart for the GBPNZD. To aid in the analysis of our established downtrend, we have connected a series of common swing highs to form a resistance trendline. Once the trend line is established, traders can look to take new sell positionsonce price moves up to this point of resistance, so long that a candle body does not close above it. A break of this trendline would invalidate our analysis at least temporarily and traders would be best to look for other opportunities elsewhere.

Trendlines can also be used in conjuncture with other forms of support and resistance. Below we have included a Fibonacci retracement in conjunction with our trend line analysis. Traders can look to place entry orders to sell were these two forms of resistance meet. This way using an entry as opposed to a market order, traders do not have to actively monitor their charts in anticipation of taking a new position.

My preference is to sell the GBPNZD near where our trendline and Fibonacci resistance converge, at 1.9570. Stop orders can be set above resistance of our resistance line under 1.9700. Profit targets should look for a minimum 1:2 Risk/Reward ratio, with first profit targets near the previous low.

Alternative scenarios include price breaking higher, temporarily concluding the mentioned downtrend.

---Written by Walker England, Trading Instructor

To contact Walker, email Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to

DailyFX provides forex news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.