Never miss a story from Kaye Lee

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Kaye Lee

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

  • Classic "Buy the Dip" Set-up
  • End of a 5-Wave Elliott Pattern for GBP/NZD
  • A Viable Entry Opportunity Happening Right Now

The AUDCHF trade we highlighted yesterday worked out very quickly, and now today, we’ll look for a similar result from a GBPNZD set-up, although this trade goes in the opposite direction as the AUDCHF one did.

The daily chart is very straightforward, as price is in an uptrend and is pulling back towards support for a possible bounce.

Guest Commentary: Pullback in GBP/NZD Uptrend

A_GBPNZD_Set-up_Thats_Happening_as_We_Speak_body_GuestCommentary_KayeLee_December3A_1.png, A GBP/NZD Set-up That's Happening as We Speak

On the four-hour chart below, we see a potential completion of an Elliott wave pattern. The five waves up are clearly marked, and the pullback has been two-legged, with the support zone marking potential end points for the c wave.

Guest Commentary: End of a 5-Wave Elliott Cycle for GBP/NZD

A_GBPNZD_Set-up_Thats_Happening_as_We_Speak_body_GuestCommentary_KayeLee_December3A_2.png, A GBP/NZD Set-up That's Happening as We Speak

In this case, a reasonable support area has been derived from previous resistance levels visible on the four-hour chart. Together, the final support zone is 1.9742-1.9866.

As traders will note, price has already begun to flirt with the support area and may be prepping for a move already.

The trigger would be a bullish pin bar, a bullish engulfing pattern, or a bullish reversal divergence on the hourly chart (see below). At the time of writing, the first bullish pin has already formed, as shown.

Guest Commentary: GBP/NZD Entry Opportunity Happening Now

A_GBPNZD_Set-up_Thats_Happening_as_We_Speak_body_GuestCommentary_KayeLee_December3A_3.png, A GBP/NZD Set-up That's Happening as We Speak

The first entry would have been near the 1.9905 level, and those who are able to hop on at this level on a price pullback can probably still get on this move. If not, the other option would be to wait and see if price pulls back to the support zone for another swipe before heading upwards.

This is trend trade, so the set-up should be traded at full (but controlled) risk. Those who are unable to get in on the first entry should take solace in the fact that many of these trades do give a second entry opportunity. Of course, what happens next is entirely in the market's hands.

By Kaye Lee, private fund trader and head trader consultant,