The GBPNZD pair found support at the 2.0420 level last Friday and has been inching higher within an ascending triangle channel since.
The short-term trendline seen within the channel has become a support structure since last week’s bounce. This suggests there is room for a move higher near the 2.1100 handle.
Here is where we could expect price to test the ascending channel top, unless price action extends to the 2.1200 handle; a trendline resistance that includes all price action.
Alternatively, a break of the 2.1200 would call for a fresh leg higher, potentially targeting the 2.1600 zone.
We might expect a successful test at the trendline resistance to offer a retracement lower with the 2.0230 level coming into play. The shorter-term target, however, lays at the 2.0400 handle.
The 4-hour chart supports the same view. However, in this chart, we look for intraday targets.
That said, an intraday retracement can be expected near the 2.0800 level, provided of course we get a rejection at the 2.1100 handle. We could expect a full retracement from the 2.1100 top to slide down at the 2.0600 handle.