After a noticeable slide from its peak at 2.2750, GBP/NZD seems to be losing steam on its downward trajectory. Could the bulls be gearing up for their next move?
Here’s what you need to keep an eye on if you’re optimistic about GBP/NZD continuing its upward trend:
Recently, the New Zealand dollar got a lift against the British pound, thanks to China’s latest consumer-focused stimulus and easing global growth concerns. However, this boost may be short-lived. Traders seem to be preparing for upcoming FOMC decisions and reignited tariff issues, which could shift momentum away from commodity-linked currencies.
It’s crucial to remember that market price directions and volatility are usually influenced by fundamentals. If you haven’t already, make sure to dive into the economic calendar and follow the latest fundamental news on the British pound and New Zealand dollar!
The pair, which has shown strength within an ascending channel since mid-2024, took a nosedive from its 2025 highs near 2.2750. Now, though, it looks like this selling pressure may be waning. GBP/NZD is forming green candlesticks around the 2.2350 level, a significant area aligning with the daily Pivot Point, the 38.2% Fibonacci retracement of February’s rally, and the support line of the upward channel on the daily chart.
Is GBP/NZD getting ready to solidify its long-term uptrend? If it manages to hold above 2.2350, we might see a revisit to the March highs or perhaps fresh 2025 peaks. On the flip side, should this rebound merely signal a temporary pause before further decline, and the pair falls past the 50% Fibonacci level, bearish patterns could emerge, targeting levels around 2.2200 or even the significant psychological mark of 2.2000 near channel support.
No matter your trading stance, always ensure to employ savvy risk management strategies and stay on top of high-impact developments that can sway market sentiment!
