The British pound entered a rather long period of consolidation against the New Zealand dollar back in October-November 2017 and is trading inside a narrowing range since then. Although the formed pattern cannot be called a perfect ascending triangle (it looks like a mix of a symmetrical triangle and an ascending one), it offers a valid trading opportunity in my opinion.
The chart below shows the triangle’s borders with the yellow lines. The potential entry level in case of a bullish breakout is marked with the cyan line. It is located at 10% of the triangle’s base width above the upper border. I will set my take-profit level to the green line, which is located at 100% of the triangle’s width above the upper border. I will set my stop-loss to the low of the breakout candle here unless it trades mostly outside the triangle. In that case, I will set my stop-loss to the low of the preceding candle. I recommend ignoring a bearish breakout from this ascending triangle because it should act as a continuation pattern for the previous uptrend. You can click on the chart below to see a full-size screenshot of the formation:
The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/NZD pattern. It can be traded using my free Chart Pattern Helper EA.
If you have any questions or comments regarding this ascending triangle on GBP/NZD chart, please feel free to submit them via the form below.
Posted on Forex blog.