GBP/NZD Builds Momentum with Wedge Inside an Uptrend
25 August 2025
In today’s technical analysis, let’s see British Pound to New Zealand Dollar, which has been moving very technically in recent weeks, forming a clean and healthy uptrend. The structure is quite clear: price action is supported by the red uptrend line, and we can see a sequence of higher highs and higher lows, which is the textbook definition of an uptrend.
Corrections along the way are also highly technical. In the middle of August, the market formed a flag pattern, and now, as we head into the end of the month, a wedge pattern has appeared. This kind of structure suggests consolidation before a potential continuation of the main trend. The ideal scenario for buyers would be a touch of the red uptrend line together with the lower boundary of the wedge. A rebound from that confluence would serve as a strong starting point for another leg higher.
There are two clear ways to trade this setup: a bounce from the confluence of supports, or a breakout through the upper line of the wedge. Both would be proper signals to buy and in line with the prevailing uptrend. On the other hand, if the price were to close a day below the red uptrend line, it would negate the bullish sentiment and open the door for a sell signal.