GBPNZD strengthened overnight and extended the gains on Thursday Asia session. Protracted buying triggered a break of resistance 1.8500 and through the neckline at 1.8600 confirming the upside sentiment.
The outlook remains extremely favorable for the cross, which has already rebounded strongly since testing the support at 1.8400. On top of the bullish technical indicators, the cross has closed above 20MA for the first time since mid-October and erased the two-month descending trendline.
As shown on the below chart, the bullish breakout of the inverse H&S offering higher prices, the pattern target is aiming at 1.8880, note that next resistance seems at 1.8750/1.8770 above here 1.8880 could possible.
The daily indicators suggest higher prices in the near term. Supports located at 1.8600, 1.8490 and 1.8390.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
What is your Technical View?
Do you have a different idea? Please leave us a comment and get an answer from our professional analysts