GBP/NZD 4H Chart: Breaks junior pattern
The Pound has recently ended trading in the junior channel down pattern on the four hourly chart pattern against the New Zealand Dollar.
The move was expected due to the fact that the currency pair had touched the lower trend line of a highly speculative medium term channel pattern. The dominant channel is considered speculative, as its trend lines are mildly confirmed.
In regards to the medium term future, the pair should form a new junior pattern, which should be an ascending one. However, before that the pair would face a strong resistance cluster near the 1.91 mark.
The move was expected due to the fact that the currency pair had touched the lower trend line of a highly speculative medium term channel pattern. The dominant channel is considered speculative, as its trend lines are mildly confirmed.
In regards to the medium term future, the pair should form a new junior pattern, which should be an ascending one. However, before that the pair would face a strong resistance cluster near the 1.91 mark.
The British Pound has traded against the New Zealand Dollar, as previously expected. The pair reached for a resistance level and bounced off of it. During the move a new medium term pattern was revealed.
However, the pattern is not an ascending one, as it was speculated initially. Instead the pair has formed a descending channel pattern, which is declining close to the lower trend line of the dominant channel down pattern.
Most recently the currency pair has reached the lower trend line of the junior pattern. The pair is likely to continue to fluctuate near that support level until it reaches a stronger support cluster near the 1.8850 mark.