If the long term (4+ year in development) Inverted Head and Shoulder Pattern plays out, the move could be nearly 3000 pips. This has been a highly anticipated move (by me and many others) for the last several months. We have attempted to break the neckline at 2.1050 a could times Today if finally happened. I suspect it is a combination of the UK election results and the Tory party claiming a majority in last week’s elections, and the fact that some local New Zealand banks are now seeing the possibility of rate cuts in the coming months. Also keep in mind, in 2014 the markets were pricing in over 2% of hikes, and the RBNZ only delivered 1% before stalling its rate hie cycle.
Here is the chart:
Chief Currency Strategist, Wizetrade
Disclaimer: I have been long the GBP/NZD for the last 2 weeks and am adding to my long position currently