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 best new zealand dollar exchange rate
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.

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