Pound to New Zealand Dollar Forecast: 2.1044 in Three Months

The Pound is near its April lows against the New Zealand Dollar following Friday's selloff, but we look for support to kick in again.

GBP/NZD could be turning higher again amidst solid technical support and deteriorating global investor sentiment, but inflation data from both New Zealand and the UK could provide two-way volatility this week.

The Pound to New Zealand Dollar exchange rate is undergoing a period of consolidation, but the broader uptrend remains intact. This week's highlight is the RBNZ decision.

The Pound to New Zealand Dollar exchange rate looks constructive over multiple time frames, and we expect further advances in the coming days.

A constructive technical setup and a limited calendar risk in the coming week, save for an appearance by RBNZ Chief Economist Conway, should support the Pound to New Zealand Dollar exchange rate in the coming days.

GBP/NZD is on the cusp of breaking to fresh multi-month highs, but any advance hinges on the outcome of this week's UK inflation release and Bank of England decision.

The market is overestimating the quantum of rate cuts to come from the Reserve Bank of New Zealand (RBNZ) in 2024, a mispricing that can assist the New Zealand Dollar over the coming months.

GBP/NZD was rejected at a key resistance level and we look for the subsequent pullback to extend into the next few days.

What a difference a week can make: when we published our previous week ahead forecast last Monday, the Pound to New Zealand Dollar setup was distinctly bearish.

"This week has a definite make-or-break feel about it as we head into the RBNZ MPS," says David Croy, a strategist at ANZ Bank, regarding the key event facing the New Zealand Dollar.

GBP/NZD is trending lower in the short term and the next target is seen at approximately 2.04; however, a strong UK PMI reading on Thursday could frustrate the move.

GBP/NZD finding support at 50-day moving average, but, more broadly, technicals are breaking down as RBNZ rate hike bets rise.

The Pound to New Zealand Dollar exchange rate can edge higher over the coming days owing to a broadly constructive technical setup and a difficult global backdrop.

The Pound to New Zealand Dollar exchange rate remains in an uptrend, but a failure at a major resistance line raises questions raises the prospect of a pullback developing over the coming days.

GBP/NZD technical setup constructive, further upside possible.

GBP/NZD short-term momentum positive, initial targets identified.

The Pound to New Zealand Dollar exchange rate is in the process of unwinding the weakness that characterised the final quarter of 2024, but it is too soon to suggest a meaningful rally is underway.

The New Zealand Dollar is set to embark on a recovery against the U.S. Dollar in 2024 according to research from one of New Zealand's biggest financial institutions.

Downside momentum is building and threatens to take the Pound to New Zealand Dollar exchange rate to its lowest level since May over the coming week.

The New Zealand Dollar has lost an opportunity to press fresh multi-month highs against both the Pound and U.S. Dollar and a loss of momentum in what will be a busy week for global FX risks a setback.