GBPNZD Bullish Setup – Inverted Head and Shoulders Pattern

A potential bullish reversal is forming on GBPNZD, driven by the emergence of an Inverted Head and Shoulders pattern on the chart.

Left Shoulder: A decline followed by a rally to form a local high.
Head: A deeper dip forming the pattern’s lowest point, followed by a stronger recovery.
Right Shoulder: A higher low, signalling weakening bearish momentum and potential bullish strength.
The neckline is identified at [insert level], acting as a key resistance zone. A breakout and close above this level could confirm the reversal and initiate a bullish trend.

Entry Strategy: Wait for a breakout and possible retest of the neckline as support to confirm the move before entering a buy position.

Stop Loss: Place below the right shoulder’s low to protect against invalidation of the pattern.

Stay mindful of fundamental factors influencing GBP and NZD that could impact price action, and always trade with proper risk management.