The GBP/NZD pair on the M30 timeframe presents a potential buying opportunity due to the presence of a well-defined bullish pennant pattern. This pattern often suggests a continuation of an uptrend, potentially leading to further advances in the coming minutes or hours.
Key Points:
Recent Price Action: The recent price action shows the price holding above the support line of the pennant, indicating continued bullish momentum.
Buy Entry: Consider entering a long position around the current price of 2.0740, positioned near the support line of the pennant. This offers an entry point close to potential buying pressure.
Target Levels: Initial bullish targets lie at the following levels: 2.0900: This represents the height of the pennant, measured from the top to the bottom of the pennant, projected upwards from the breakout point.
2.1000: This is achieved by adding the height of the pennant to the breakout point (which coincides with the support line in this case). These targets act as potential resistance zones that could see buying pressure.
Stop-Loss: To manage risk, place a stop-loss order below the broken resistance line of the pennant, ideally around 2.0660. This helps limit potential losses if the price breaks down and invalidates the bullish pattern.
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Weaker NZ Data: Recent economic data releases from New Zealand, like lower-than-expected business confidence, could raise concerns about the NZ economy and put downward pressure on the NZD.