GBPNZD is in the process of breaking above what is arguably the best technical level in the Forex market at the moment. We’ve been talking about the 2.1500 handle ever since the seven-month falling wedge became apparent back in March.
What makes this level the best?
For starters, it supported prices on several occasions between December of 2015 and February of this year before acting as resistance in March. What’s more, it’s the 23.6 Fibonacci level when measuring from the 2015 high to the current 2016 low.
Since GBPNZD broke free from the multi-month falling wedge, the pair has given us more than 600 pips of profit. The move I’m referring to came in late April as the cross retested 2.0850 as new support.
From here I continue to favor higher prices toward 2.2400. In fact, the objective for a falling wedge such as this places a longer-term target in the 2.50 region.
In the near-term and concerning 2.1500, the day is far from over which leaves the current breakout unconfirmed. Only a daily close above 2.1500 would warrant further consideration.
Want to see how we are trading this setup? Click here to get lifetime access.