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Over the weekend I mentioned to keep an eye on GBPNZD for a bullish breakout of the channel that’s been forming since October of last year. Shortly after the market opened, the pair broke channel resistance around 2.0140. The pair quickly retested this area, giving traders a chance to buy at former channel resistance, now support.
Today’s price action was quite typical following a breakout of a pattern that’s been forming for four months. The pair managed to climb 260 pips before settling just under near-term resistance at 2.0380.
Now that the break is confirmed, we can begin watching for bullish price action at support, which now comes in at 2.0250. Alternatively, a 4 hour close above 2.0380 would have us looking higher to the next key level of 2.0680.
Note: We do have UK GDP within the next 24 hours, so be sure to take that into account when planning your trade.
Summary: Watch for bullish price action at 2.0250 or wait for a break above 2.0380 to look for a long opportunity. Key levels to the upside come in at 2.0380 and 2.0680.