The GBP/NZD is in process of carving out an intraday inverted head and shoulders pattern. However there is a lot happening in this chart to assist. Take a look:
The 4 hour chart broke to new trend lows after coming out of a triangle consolidation pattern. That likely tripped a lot of “long stops” and signaled new shorts for trend traders. However, the reversal back above the 1.9350 level exposed the possibility of a short squeeze after a false break lower. The current inverted H&S pattern looks set to target the (purple line) down sloping trend line that comes in around 1.9880 after the move above 1.9615 (previous support) today.
Blake Morrow
Chief Currency Strategist, Wizetrade
Disclaimer, I have been building a long term “long” position in the GBP/NZD
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