- GBP/NZD channels lower during November and reaches support at the 50-day SMA.
- This could be a turning point for the pair and lead to a breakout and continuation of the uptrend.
GBP/NZD has been correcting in a mini channel throughout November after hitting the October 30 high. It has now reached support at the 50-day SMA at 2.1446 and has made a strong recovery, evidenced by the long green candle so far on Wednesday.
GBP/NZD Daily Chart
If GBP/NZD continues to recover and breaks above the upper channel line, it will likely continue to rise towards a target at 2.1900, just below the July 29 high.
A break above 2.1675 – the November 15 high – would likely confirm a breakout of the channel and a follow-through towards the aforementioned bullish target.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
