Pound Extends Breakout Move Against New Zealand Dollar

The Pound is trading higher against the New Zealand Dollar after it followed through strongly to the upside after initially breaking out from its narrow triangulating range.

At the time of writing the exchange rate is at 1.7947 – up from 1.7774 at the start of the previous week.

GBP/NZD had been moving in a range outlining a potential triangle defied analyst’s expectations that it would continue tapering to the pattern’s apex, after breaking out above the upper border line of the triangle in a bullish extension three weeks ago.

Since then it has consolidated its break and continued rising in a steep channel which is forecast to carry substantially higher, probably towards a target at 1.8300.

The target is calculated by taking the height of the triangle at its widest point and extrapolating it higher from the point of the break.

Today’s (Wednesday’s) break above the 1.7946 highs was a major breakthrough for the pair as it helped confirm the bullish short-term trend, reinforcing the probability it will continue to the 1.8300 target.

However, those seeking further confirmation may wish to wait for a move above the next key level at 1.8000, which has round-number psychological significance, before joining the bulls running higher.