The movement of GBP/NZD has been characterized by three patterns, namely, a medium-term ascending channel, symmetrical triangle and a falling wedge. The former was breached last week, suggesting that a rebound from the bottom channel boundary circa 1.86 should follow.
Meanwhile, the latter two point to a longer appreciation that could lead the pair towards the upper boundary of the triangle in the 1.8650/1.8700 territory.
Thus, it is expected that the falling wedge could be breached to the upside either today or tomorrow, and the rate would subsequently surge up to the aforementioned triangle boundary.
However, the rate faces a significant resistance area formed by the 55-, 100– and 200-hour SMAs and the weekly PP circa 1.8550. This level might hinder the pair for several hours, but it should not hold for long.
Meanwhile, the latter two point to a longer appreciation that could lead the pair towards the upper boundary of the triangle in the 1.8650/1.8700 territory.
Thus, it is expected that the falling wedge could be breached to the upside either today or tomorrow, and the rate would subsequently surge up to the aforementioned triangle boundary.
However, the rate faces a significant resistance area formed by the 55-, 100– and 200-hour SMAs and the weekly PP circa 1.8550. This level might hinder the pair for several hours, but it should not hold for long.