British pound flagging against New Zealand dollar

The British pound has gone back and forth during the trading session yet again on Tuesday, as the British pound in general has been trying to find its footing to go higher. With Brexit going on, it’s obvious that there are a lot of issues out there that could throw the British pound around. Against the New Zealand dollar, we are forming another flag, and that flag does of course suggest that we are going to go higher. The 50 day EMA is just below, and it should be noted that the market breaking above the 2.05 level opens up the idea of going towards the 2.15 NZD level.

We had recently seen the “golden cross” in this pair, and as the British pound has been showing signs of life against most currencies, it should be no different here either. At this point, it looks as if short-term pullbacks are buying opportunities as the market continues to find plenty of support, especially against the psychologically significant 2.00 NZD level. As soon as there is some type of clarity when it comes to Brexit or perhaps even just the elections in the United Kingdom, this market will probably go much higher as some type of certainty is the only thing the trader seem to care about at this point. In fact, it’s almost as if the result doesn’t matter, just that traders know what they will be dealing with next. At this point, look for value and taken advantage of it as it shows itself being available. On a break above the 2.05 NZD level, I would not only be long of this market, but aggressively so, adding every 100 pips in small increments on the way to the 2.15 NZD level. If the market was to turn around and wipe out the flag down at the 1.93 NZ level, then one would have to think something catastrophic would be coming.