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GBPNZD Retests 2.0850 after Breaking Wedge Resistance

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Yesterday’s RBNZ statement caused quite the stir in the New Zealand dollar, sending the currency higher by more than 100 pips against the greenback. Naturally, this sent NZD crosses such as the GBPNZD lower by several hundred pips in the blink of an eye.

But for those who saw my recent weekly forecast and are looking to buy the pair in the coming sessions, these discounted prices are a good thing. It offers us the chance to watch for a buying opportunity from the previously mentioned 2.0850 handle.

In case you missed it, here is the falling wedge that began last September:

GBPNZD falling wedge pattern

That opportunity may take a couple of sessions to materialize and could even form below 2.0850, but the general idea is to wait for bullish price action to signal that the selling is dissipating, and buyers are once again ready to take the reins.

If the pair can catch a bid at current levels, the odds of an eventual move toward 2.1500 and even 2.2400 are relatively good. And considering GBPNZD was previously in a period of consolidation that lasted for eight months, perennial buyers of the pound cross should be rested and ready to go.

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GBPNZD key technical break and new support level on the daily chart

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