GBPNZD has formed lower highs and found support at the 1.9100 handle, creating a descending triangle on its 1-hour chart. Price just bounced off support and is making its way to the top around the 1.9175 level.

If this keeps holding as resistance, another dip to the triangle bottom could follow. However, the pair is also approaching the peak of the formation, so a breakout in either direction could be due soon.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the top of the triangle is more likely to hold than to break. The 200 SMA also lines up with the triangle resistance to add to its strength as a ceiling.

A breakout, however, could set off a climb that’s at least the same height as the chart formation or roughly 200 pips. Stochastic is still pointing up to suggest that there’s a bit of bullish pressure left while RSI also has some room to climb before reflecting overbought conditions.

Both oscillators are closing in on the overbought region to signal potential exhaustion among buyers, and turning lower could confirm that selling pressure is building up.

Sterling is enjoying some support as Brexit talks could finalize a deal soon, at least according to some EU ambassadors. PM Johnson is also reportedly preparing for an “intervention” by talking to EC President von der Leyen this week.

The UK PMI readings are also worth watching, with both manufacturing and services industries expected to post dips in activity for the month of November.

Meanwhile, the Kiwi drew most of its support from counter currency weakness in the previous week and the lack of downbeat data. There are no major reports due from New Zealand this week, so the currency could keep taking cues from sentiment.