Pound versus New Zealand Dollar: Technical forecasts and predictions for GBP-NZD
Before delving into the currency charts to ascertain the health of sterling against the New Zealand currency we note that at present GBP/NZD is trading half a percent higher at 1.9205. It's been a good day for sterling; however it is worth noting that GBP has not been able to register similar gains as is the case with its advance against the Australian dollar.
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The technical picture behind the Pound / New Zealand dollar exchange rate is, as is the case with the GBP/AUD, in favour of sterling.
The 2-6 week time frame shows the formation of 7 bullish technical events to 1 bearish event. The bulls have been boosted with the formation of a slew of positive indicators since the 26th of April.
However, the 3rd of June saw the formation of a bearish Relative Strength Index (RSI) number. The RSI is used to determine whether a trend is over-heating; thus the
RSI could be telling us that the British pound is due a pullback against the New Zealand dollar.
According to Recognia Inc. short-term support is seen at 1.8262 and resistance is at 1.9155.
We would head the warning of the RSI indicator and await a period of consolidation for this currency pair.
Medium-term outlook for the Pound versus New Zealand dollar exchange rate
The medium-term outlook (6 weeks t0 9 months) is once again in favour of the British pound with 4 bullish events outweighing one bearish event.
The case of the bulls has been strengthened by the formation of a positive Triple Moving Average Crossover (4-week 9-week 18-week) indicator on the 31st of May at 1.9155.
Regarding the forecasts - we would certainly say that a climb towards resistance at 1.9615 is now possible owing to the momentum behind GBp-NZD.
But, as always - the timing of this move could be difficult, particularly if we consider the over-cooking short-term picture.