Upside risks have dominated the British Pound against the New Zealand Dollar, thus sending the exchange rate to gained 677 pips or 3.57% since mid-June. The currency pair hit a strong resistance set by the monthly pivot point at 1.9621 on July 2 and reversed south.
The GBP/NZD currency pair has been moving along a junior ascending pattern since June 19 and has currently tested the lower boundary of the pattern.
Given that the currency exchange rate has moved closer to the bottom border of the ascending pattern, a breakout could be expected today. However, technical indicators suggest that bulls are likely to prevail in the market during the following trading sessions.
