© Dukascopy Bank SA
Since the beginning of April the Great British Pound has been outperforming its New Zealand counterpart, which led to formation of the upward-sloping channel. Accordingly, the long-term outlook is positive. So is the short run, considering that GBP/NZD has just bounced off the lower trend-line at 1.9377, where we also have the weekly S3 and Jun 12 low.
Presently, currency pair is facing the resistance at 1.9648, created by the weekly S1 and 200-period SMA. And while this level is fairly significant, the rally is expected to extend beyond this point, potentially up to 2.00, where it is going to meet the upper boundary of the pattern.
© Dukascopy Bank SA