GBP/NZD Price Forecast: Testing upper borderline of channel, attempting breakout

GBP/NZD is testing the upper line of a falling channel and trying to breakout higher.
A successful break higher could extend the established trend to upside targets.

Joaquin Monfort FXStreet

GBP/NZD tests the upper tramline of a channel it has been falling in during the month of November. A successful breakout from the channel might lead to an extension higher towards resistance in the mid 2.1800s.

GBP/NZD Daily Chart

A break above 2.1675 – the November 15 high – would probably confirm such a move and result in a follow-through towards the upside target at 2.1845.

The (blue) Moving Average Convergence Divergence (MACD) momentum indicator is turning up at the end and looks poised to cross above its (red) signal line, confirming a buy signal. If such a cross accompanied a breakout from price, it would provide supporting evidence for an extension of GBP/NZD higher.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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