? GBP/NZD Ascending Wedge Pattern Favours Bull Breakout ?

2 min read

Dear traders,

the GBP/AUD is building a massive bull flag pattern. The main question whether the pattern will break north as it should or will it fail and reverse?


Price Charts and Technical Analysis

The GBP/NZD retested the 21 ema support zone after reaching the wizz 6 target. But price action made a clear bounce and retested the Wizz 6 zone again. Although the GN failed to break the resistance zone, the bulls are buying at higher support levels (purple line). This indicates that the buying pressure will probably overcome the resistance at the double top (green arrows), which also looks like an ascending wedge chart pattern.

The GBP/NZD remains bullish as long as price stays above the Wizz 5 support zone. In that case, a wave 4 (purple) still remains likely. But a break below the support makes the bullish outlook unlikely (red x), especially if price breaks below the 144 ema (2x red x). 

The analysis has been done with SWAT method (simple wave analysis and trading).

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Good trading,
Chris Svorcik
Elite CurrenSea

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