How to Trade the GBPNZD Dollar Pair

As I have mentioned in the past multiple times the pair GBPNZD is one of my favorite pairs in the Forex market. It ebbs and flows well, however is also one of those volatile pairs that if you do not trade properly can kill your trading account.

Firstly let’s look at the benefits of this pair –

  1. It is Volatile so getting over a 100 pips with a very short amount of time is very easy.
  2. This pair tends to respect price action very well so trading with my engulfing strategy it works well.
  3. This pair is a fast moving pair so less time waiting for positions to mature.

Now, let’s look at the Dangers of this pair –

  1. The first danger is you MUST use a stop loss, there is no looking away on this pair otherwise.
  2. The second danger is you must be patient on this pair before entry waiting on multiple confluences.
  3. And lastly do not risk too much leverage on this pair because it moves a lot.. It is better to risk half lots in order to be able to trade another day than to risk too much.

Okay so now that I have gone over the risk on this pair, let me tell you my story with it. I was introduced to this pair late last year around October sometime. When I first was shown the pair I was shown by another trader its ability for this pair to –

  1. Respect long term trends
  2. How it respects price action

My Story With The GBPNZD Pair

It was one of those pairs that most traders kept away from and I saw it like a challenge to get to know. As like I have mentioned before in the past I became like aย Zen Buddhist and watched the chart religiously for like around three weeks. During that time I did not trade, I simply just watched it and studied its regular flows. This is something I recommend for anyone wanting to become a better trader.

reclining buddha and timon

Learn how your pair moves, it only takes one pair as an example to turn $100 to 1 million as the saying goes. Respect it and learn it.. The same goes with ย any pair.

It would of been around November last year when I started looking for a setup, mind you I was trading quite heavily during that time EURUSD and GBPUSD so they distracted me at the same time.. The first positions I traded on this pair was when I Identified this sideways range. I will try and post a screenshot below and on that sideways range I managed to get just over nine trades in a row all winners. My last of course being a loser. That was my beginnings for this pair. During that 9 sideways winning streak as an estimate I managed to pull just 1200 pips from the market and one loss for around 113 pips at the end. So overall just over a month of trading this pair a good 1000 pip gain.

That streak really did it for me with that pair. I know I have had multiple streaks on other pairs but this was different because this was one of those pairs many other traders said ” Oh no way am I trading that pair, too scary..” I was more determined from that statement.

gbpnzd winning streak

Above – Okay, after looking back on the chart, I found the streak that lasted between October and November last year. This is a current screenshot, I had to go back to find it.. As you can see the last trade is a loss, each successful trade opened by looking at price action on this pair first before entry.. So, now if someone says it is almost impossible to get a 9 win winning streak, you can say, well that is not true.. It happens, it has happened to me, it is not often but it does happen.. It just takes discipline and patience with the pair you focus on..

So, as time went on I did more trades, I had a losing streak of 3 trades one time which almost seem to make me want to give up on this pair, but I noticed what I had been doing wrong, like many traders, once on a streak I fell intowild horses brumby the confidence arena which ended up getting me on a losing streak and to think I only lost around 350 pips.. I started looking for multiple confluences and found a good retrace entry on the pair and made just over 400 pips in under 24 hours.. And to think on that trade as well, I only risked 75 pips.. Okay, so i was back on track and since then I have been trading this pair and it has been one of my top performers overall..

I hope that story inspired you in some way as well and like I said I do not want anyone to jump the gun with this pair, if you decide to trade it remember it needs to be treated with respect and patience. ( In other words if you get losses on this pair do not blame me, it takes a while to tame this pair in a way like a wild horse or brumby… )

How To Trade the GBPNZD Pair?

Above – Part 1

Above – Part 2

Above – Part 3

Above I have made a 3 part series on this pair to show you how it works and moves and what to look for when trading. If you have any questions relating to this pair then commenting below is the way to share your answer. As this series took me quite a while to make also take a few moments to like and share in the social networks or if you have not already done so add you name and email below or to the right to watch more videos like these and tips to do with Forex.

About Timon Weller

Timon Weller is the professional Trader behind the blog Forex Reviews as well as a Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Hi Timon,
    As usual keep the good work,you’re always great. I just watched and carefully listen to your teaching on GBPNZD,actually I am not just interested in this pair but to learn how you plan a trade from the start.I have couple of questions,please if don’t mind answering.
    Q1. Do you decide or make decision on your trading bias based on weekly price frame irrespective of which lower time frame you will be trading.
    Q2. Do you have to draw all your structure zones ( Support & resistance zones) only on the weekly time frame if you decide to trade daily,4H,1H?
    Q3.Why is it necessary that your stop loss is above the structure zone or recent high but not above the high or low of your entry price bar?
    Q4.Watching the GBPNZD videos,after the price action signal ( Engulfing bars) do you enter the trade at market price after the engulfing bar close?
    I am very sorry for all the long qiestions,I know you are quiet busy trader,just a bit of help for me.I need a mentor like you.

    • That is fine friend, that is what this site is for, questions and answers.. So ask away..

      Here is my answers –

      1. Yes I always look at daily and weekly bias.. However Daily is enough on the pairs that one gets used to.. The minimum a trader should look at is daily for bias..
      2. I use structures only from daily and weekly charts, however if i drop down to lower time frame such as 1 hour I will then highlight areas that coincide with those zones.. Looking for multiple confluences to take a trade.. I like at least three confluences.. One being Price Action, Two being major structure, three may be a trend line support or fibonacci or bollinger band pierce..
      3. You can do either, that is up to you and mostly above entry candle is sufficient. Depends a lot on pair as well.. As an example often I will do a two candle stop on entry on gbpnzd when not all the confluences line up.. Meaning two closing lower or higher than trade signal.. Gives a little more room but not too much room if wrong above or below move.. However a stop around 10 pips above entry price action signal works as well.. More stop outs, but smaller stop outs.. This is a good scalping method..
      4. As soon as engulfing ends, I then enter a few pips in the direction, but yes mostly manually I enter after I see signal.. So yes at market price.. Not a fan of orders, if I use them, I am still watching trade open.. Then I set stop, take profit, break even pips amount and then walk away.. Watching the screens is not recommended in trading after entry, better to just come and check candle close depending on time frame rather than sitting in front of screen.. Most people get emotional watching price and causes them to close trade early or not hold position if they watch.. That is another topic though really..

      I hope that gives you some answers.. Let me know if it helped..

  2. Hi Timon,
    Thanks for your time and those insightful detailed answers. I took two trades yesterday based on daily alert candlestick,very good result about 150pips gain. So excited,positive and better confidence.Now am reviewing different instruments from the past,hopefully my trading will get better and better. I hope you will do a video on back-testing.Thanks once again!!!!

  3. Thats one of my favorite article here in your site and one of my favorite pairs too. I hope to see your analysis with this pair and other high volatile pairs regularly within your daily trade setups.. ๐Ÿ™‚ Thanks for the videos Timon

  4. top stuff as usual thanks timon

  5. Hans Fredrik Solbakken says:

    Hi Timon can you respond to which settings you are using in MT4 when you are adding the Bollinger Bands for the different time frames in your video.

    • Hey Hans,
      Hows it going? In that video the Bollinger band settings are the standard settings. 20 with a deviation of 2. Should be standard on your MT4, no modifications needed.
      Please be aware only using in above video as extra confluence, not actually as a trading signal.
      Have a nice day..

  6. Thank you TImon….great series on a pair that I too have learned to love from your own teaching and passion for it……..side question on your bias for this pair…..since putting this series together this pair seems to have more or less leveled off. Do you have any channels or chartings you have put together in the recent past which gives some clues into some of the more recent buy/sell zones? My own recent bias on this pair is that its getting into a sell zone in the next day or two but I was curious how my own charting might look compared to your own………Thanks again! Sal

    • Hey Sal,
      Your welcome. Yeah there is a big reason for the leveling, at the moment the whole market is low volatility so a lot of markets are moving slower than usual. It is starting to pick up though and also sometimes pairs go through what is called congestion periods. These are common areas before break back into another short or long term trend. Also yeah that is correct, it is getting closer to a area of interest currently to look for bearish evidence.

  7. Excellent video, thank you I am going to practice I will let you know how it turns out, by the
    way can the Bollinger band strategy be used on say the eur/aud or Gbp/usd or any other pair

    Thank you
    very much appreciate the time you took to put this together for the benefit of other.

  8. Stefano Rodrigues says:

    Hi Timon,

    Thanks for showing us how you trade these pairs and breaking it down with the different time zones. As always top quality work.



  9. Hi Timon,
    Thanks for sharing this – as always I’m a grateful for all your advice and tips. Just watched this video even though you posted it about a year ago now and you’ve made me go back and look at all my charts to look for trend channels! With regard to GBP/NZD it appears now that this pair has broken out of the trend channel – would you agree? If so would you also agree that the recent pull back to the trend line in late March this year is evidence of bullish bias now taking control…or do you think that this is just a blip outside of the trend channel and soon it will come back inside the channel?

    Many thanks and kind regards,

  10. Hi Timon,
    Many thanks for these usefull videos, i am learning each time something new from you. Again thank you so much . to me you are an angel.
    BTW, could you please explaine what the bias (trading bias) is?
    God bless you, cheers Reza.

    • Hey Reza,
      You’re welcome, thanks. When I am referring to bias I am referring to bias of bullish or bearish on a market. As an example, bullish bias or bearish bias.

  11. Excellent stuff Tim, A million times more useful than what most gurus tout for great price! Thank you!

  12. Hey Timon,
    Thnx for Gr8 Video’s – Appreciate your videos very much + your courses ๐Ÿ™‚
    I like to trade this pair also but haven’t had alot of success (trading 15min TF). When do you think is the best time to trade this pair ? Asian/London or both………I live in AU & wondering if suitable to trade in the Asian session.
    Thanx again for all you do.

    • Youโ€™re welcome Paula, thanks for the feedback.
      Yeah, good question, during the London to US session is when I trade this market mainly.
      ( Please note that the GBPNZD pair is one of the most volatile pairs to trade so not a pair recommended to trade if you are a beginner to trading.)

  13. John McAlister says:

    Hi Timon
    Thanks for explaining things as good as you do. I look forward to all of your courses. Great job.

  14. Lawrence Lim says:

    Hi Timon,

    Thank you very much for these wonderful videos which are full of tips and useful trading information.

    I really enjoyed your video and the way you explained the charts and price actions.

    Appreciate your great work and your sharing always!

    Have a good day mate!

  15. Ryan Young says:

    Hi Timon,

    Thanks for the in-depth explanation.

    I really got alot out of how you breakdown the process from the weekly timeframe trends/channels to be able to place entry’s and stops in the lowertime frames (1 HR) while looking for confluence.

    Also, with using Metatrader is there any further instruction/info on how to set alarms/email as I’m not in front of the screen all of the day.
    It would be useful to be notified if a pair is moving into a predetermined zone in preparation for an entry.

    Thanks again.


  16. Russ Weaver says:

    HI Timon. Thanks for yet more invaluable trading information at the moment i am trading the dax and wall st using the 1h & 15 m time frames using the methods you have shown with great success i had been trading for years but losing because of – not putting in stops properly-bad money risk management and not waiting for the market to reach the all important resistance and support level zones after some fine tuning i have finally started to make money and losses are small and not often , i am now back testing forex pairs so the GBPNZD pair should be an interesting prospect.
    Thanks for your Help, RUSS WEAVER.

  17. Ibironke says:

    Many Thanks Timon for this great video. It’s a very helpful eye opener on this currency pair. Really appreciate your support. God bless you!

  18. Hi Timon,
    I would like to thank you for all the time and effort you put in to bringing everyone these videos. I started trading 25 years ago in Australia. I then gave it up after loosing all of my money when my broker went broke. Not a lot of safeguards in those days. No internet trading and not a lot of accessible information back then. Mainly daily figures from the Age newspaper. When I saw your course advertised I bought them all as I am retired now and have the time to study hard. I could hardly believe my eyes at such a small price tag for the value of the content. Truly amazing. Plus free follow up videos. I have paid many thousands of dollars for top courses with far less information. You give so much value and knowledge for such a young person. I was once told that if you get one great teacher in your lifetime you are blessed. I am super lucky as I had one at primary school and now you with my Forex learning. You are truly a gifted teacher in many many ways.God bless you Timon and keep teaching as I believe you were born to teach. Robin. NZ.

  19. Frank Nilson says:

    Hi Timon, thanks for the videos and teaching. Your openness and comprehensiveness is much appreciated.

  20. I just wanted to say these are great videos. Thank you for enlightening me about GBPNZD.

    Are there any similar pairs to GBPNZD that you also recommend?

  21. Hi Timon

    At the moment I am trading just small micro trades.

    Do you find with your trading that often the trades will be in the negative for long periods before making a profitable trade.
    I wonder whether I am entering the right trade at times.

    • Hey David,
      Thanks for sharing. Yeah, good question. It depends on the trade and the market at the time. Sometimes the market is congested ( sideways ) for a period of time and sometimes the market is trending strongly. In other words, in a strong moving market such as a trending market a trade can go into profit quickly, however in a slow moving market or sideways market it can take time.

  22. Thanks Timon for your advice and time.

  23. Wow Tim……I have traded GBPNZD last year on demo and could not understand how to trade this pair lost a lot and I give up on it.
    I really appreciate the way you have explained this pair , and I will look into it again since I have more understanding of how to trade this pair.

    As alway thxs so much

Speak Your Mind