Flightless Kiwi Might Just Fly vs. GBP

Hi Dave,

There’s a rectangle pattern in GBP/NZD. I’m still thinking long waiting for some kind of setup or breakout. Do you see more correction coming on this sharp trend or more likely a continuation higher first?

Thanks,

Sean C. – Cos Cob Connecticut

Thanks for the question Sean.

I know this question is from a few days ago so my answer is now being offered with the advantage of seeing the recent break lower.

Regardless, the daily and weekly chart pointed to a continuation lower anyways. It was merely a matter of time as you noted regarding the ‘rectangle formation’.

From here, prices appear poised to move lower towards 1.8000 and if breached should re-test the 2016 lows at 1.6750’ish. Keep in mind that is a longer-term forecast.

Hope that helps,

Dave

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