GBPNZD currently @1.9417. The break of the descending wedge BELOW the 1.9390 will give us a potential short to the 1.9380-9350 level where in the past have found some buyers (see diamonds at June 11 & 26th). The ATR (Average True Range) for the pair is currently at 98 pips.
We would like to see the break of the wedge and continuation to the downside (past buyers area @1.9370-50), but on the other hand we have to take in consideration the moves of the GBPUSD and NZDUSD. Both are moving really slow and without clear direction. NOTE: If you look at the MACD, we have some divergence – where the MACD is going higher but the currency keeps printing lower candles – again a potential fake or message that the bounce is about to go north.
On the GBPUSD, we have been stuck in a range of 1.7105-1.7160 and the NZDUSD not giving away the short below the 0.8800. NZDUSD currently stuck in the 0.8800-0.8825 area. So, until we get a clear direction going into next week, we will be trading the break of the DESCENDING WEDGE.