GBP/NZD Testing Channel Support Within UptrendIn the displayed daily chart of GBP/NZD, the price is forming a well-structured and clearly defined ascending channel. This channel is bounded by two thick lines, an upper resistance line and a lower support line, both of which have been tested multiple times by price movements. At the upper boundary, there have been three valid touches, each resulting in a significant downward reaction. Meanwhile, at the lower boundary, there have also been three strong touches, confirming the channel’s validity as the main path of the ongoing uptrend.
In addition to the major channel, there is also a minor internal channel, indicated by dashed lines, showing price movement within a phase of consolidation or minor retracement inside the larger trend. The minor support line is currently being tested, signaling a critical area to determine the next directional move.
At the moment, the price is hovering near the minor support and presents two possible scenarios moving forward.
In the first scenario, the price could bounce from this minor support, continue strengthening toward the minor resistance, and potentially extend further toward the major resistance area around 2.36–2.38.
In the second scenario, if selling pressure persists, the price may break below the minor support and continue falling toward the major support of the larger channel, located around 2.17–2.18, before eventually bouncing back upward.
Overall, this price structure indicates that the primary trend remains bullish as long as the major support within the channel holds. However, in the short term, the market is in a consolidation phase with the risk of a deeper retracement. A confirmed bounce from support or a breakdown through the minor support will be key in determining the next move. The suggested approach is to wait for clear confirmation from price action before making any trading decisions.
