GBPNZD
This one is has been in a free fall ever since the Brexit vote. It has broken every possible support and is trading at all time lows.
For the next year I really don’t see anything good for pound so I am only looking for a downside continuation, the only question is where to sell...
One possibility is the former channel support as the new resistance which has served as such plenty of of times these past 7 years. So if the test coincides with with a test of falling trendline (green) around 1.8300-1.8400, I would say it’s probably the best entry we can get 2017.
I would of course prefer a deeper retracement. A break of the trendline to test the former rising trendline (red) as the new resistance and then try to short the pair around the psychological 2.0000 level, but as I said, at least at the moment, I really don’t see it happening in 2017.
As far as the targets go - when you are creating new all time lows the best strategy is to simply use a trailing stop and ride it as long as you can, cause you'll never know how far can it actually go. I mean - it can drop to 1.5000 maybe 1.2500, but just as well it can start some kind of prolonged consolidation period at these lows right here and never really slip below that 1.6700 level.
Just look at the EUR/USD for the past two years. Even when the fundamental differences between the two currencies grew exponentially, it was just sitting there in the consolidation mode, ranging between the support and resistance.
So yeah! This could be a great opportunity, but its important to keep your expectations in check.
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