GBPNZD Long PositionSince August, price has been consolidating around a significant resistance zone, testing it five times without breaking through. On the sixth attempt, we finally saw a decisive breakout, signaling strong bullish momentum.
Currently, price has pulled back to retest that broken resistance, which now aligns perfectly with the 61.8% Fibonacci retracement level a key area for continuation in trending markets. Additionally, price has respected a rising support trendline while simultaneously retesting a broken resistance trendline from below, giving further confluence to this area as a solid demand zone.
What strengthens the bullish case even more is the clear formation of an inverted head and shoulders pattern, with the neckline already broken and now being retested. This is a classic reversal signal, and the fact that the retest coincides with multiple technical factors gives us a high level of confidence in a potential bullish continuation.
