GBP/NZD 4H Chart: Trades In Medium-Scale Triangle

The British Pound has been constrained by several patterns against the New Zealand Dollar. The most important of which is the five-month medium-scale triangle which was formed on December 5.

During the past two weeks, the currency pair has been trading between the upper boundary and the lower boundary of the medium-scale triangle. A resistance set by the weekly pivot point was restricting the exchange rate to make any upward movement.

In the four-hour time frame, technical indicators suggest that the currency exchange rate could decline further. While on the daily time frame, its indicate that bulls are likely to grow stronger.