© Dukascopy Bank SA
In case of this pattern we would rather look at its upper boundary, considering it received more confirmations during the last 65 hours than the lower counterpart. Accordingly, the falling resistance line is a more reliable estimator of the turning points for GBP/NZD in the nearest future, it is also currently being tested at 1.9257.
Judging by the technical studies, risks are skewed to the downside, this is implied by the pattern as well. Still, most (70%) of traders are holding long positions, betting that the current dip, even if it is to extend, is only temporary and will be followed by a robust rally.
© Dukascopy Bank SA