GBP/NZD 4H Chart: Channel Up

Although in the longer-term it may seem that the GBP/NZD currency pair is moving in a bearish trend, on the basis of the past month it has formed a clear channel up pattern that assumes more gains for the base currency. We observe a distinct consolidation above vital technical levels including the monthly pivot point and 200-period SMA, both placed at 2.0871/83 right now. The key bullish mark to breach is the April peak at 2.1347, which is succeeded by the monthly R1 about 60 pips from above. By overcoming them, the pair will be in a good position to prolong the advance up to the pattern's upper boundary at 2.1585. As the weekly technical indicators suggest, this mark may cause a downside correction.