Main items we can see on the chart:a)the price is inside an ascending channel (primary structure)b)currently, the price is above a resistance zone (now working as support)c)on the support zone, we can see a flag pattern (continuation structure)d) now the price has broken the flag pattern after the abc structure was finishede)our target for the bullish movement is the higher trendline of the ascending channelshare your view of the chart on the comments!
Out of the 40 instruments in the forex asset class, gbp/nzd ended up ranking 23rd for the day in terms of day-over-day price change.
Out of the 40 instruments in the forex asset class, gbp/nzd ended up ranking 13th for the day in terms of day-over-day price change.
As for the rationale, technical traders seem to be citing the appearance of divergence, double top, fibonacci, relative strength index and trendline technical patterns.
The closest is the 20 day average, which is 165.8 pips away.
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
Price is currently sitting above the major weekly/daily resistance and showing signs of rejection which could mean its now become support….
As for the rationale, technical traders seem to be citing the appearance of channel and double top technical patterns.
Volatility for gbp/nzd has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note.
This imputes a buy/sell ratio of 0.43, which is bearish.