Highlights:
- GBPNZD wedge forming, pointing to a potential 600 pip move
- Wedge taking shape near critical long-term support
- Breakout could occur in either direction, targeting 20150/18750
GBPNZD price action is creating a powerful pattern in a zone of significant support dating back almost exactly one year. It has bounced nearly a dozen times from the 19241-19400 zone since May 2014, with most of those rebounds occurring from the mid-19300s.
Daily: Sep ’13 – Present
Further adding to the technical landscape is the contraction in the price range since late March, forming a descending triangle. The combination of key support and an explosive pattern has this trader on high alert. Should it hold this key area once again and take out the top-side of the triangle we could see a sharp multi big figure move higher. To the contrary, should sellers gain control pushing it through this all-important support zone, then we will likely see the cross move swiftly lower. The height of the triangle is 600 pips, providing measured move targets of approximately 20150 or 18750.
4-hr: Jan – Present
So, in either event – break higher or lower – it could pay to have this fast mover on your radar. GBPAUD is also taking similar form near key support – You can check out additional updates on the other GBP cross-rates here.
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