GBPNZD found buyers January 15/2017 and has bounced higher. A bullish pattern (Blue) triggered a buy January 15/2017 and bulls have been pushing the pair higher since. At this moment we can now see another possible bullish pattern (Red) emerging possibly in the coming days or weeks. Traders need to wait for the red bullish pattern to terminate point C and should look for any possible buying opportunities on the retrace/pullback of red point D against red point B low. Traders also need to understand that GBPNZD can also continue higher to the target level without terminating point C and thus we will not see the point D pullback/retrace to enter any trade. It’s possible a move higher above 1.7860 with no pullback/retrace can send the pair higher to the target level.
As long as GBPNZD stays above March 1/2017 low (1.7139) we can expect another move higher towards the 1.8120 Target level. A break below 1.7139 will invalidate the possible Red bullish pattern.
GBPNZD Technical Analysis: Daily Chart
If looking to buy GBPNZD traders should be patient and wait for the Red point D pullback to the possible bounce/support area. Waiting for the red point D pullback/retrace to the possible bounce/support area will offer a better risk/reward swing trade.