British pound / New Zealand dollar to lose fresh ground in the short-term, medium-term more positive

The British pound to New Zealand dollar (Currency:NZD) currently finds itself a quarter of a percent up on Wednesday night's close at 1.9290. Today's UK retail figures have confirmed recent positive momentum sparked by yesterday's MPC surprise.

Here we step away from the fundamental newsflow and consider the technical momentum behind the GBP-NZD exchange rate.

Analysts at Trading Central have today advised that GBP-NZD is looking heavy and they are eyeing declines to 1.84.

This bearish scenario would be invalidated by the upside breakout of 1.961 which would call for 2.006 and 2.033.

"The RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the pair is below its 20 MA (1.9443) but above its 50 MA (1.9222)," say Trading Central.

Looking at the short-term charts (2 to 6 weeks) we note that the outlook for the New Zealand dollar is tipped to remain positive owing to the observation that we have 4 bearish events outweighing one bullish event.

The most recent technical occurrence on the GBP-NZD charts was the formation of a bearish Inside Bar pattern on the 15th of July.

According to analysts at Interactive Investor the short-term charts are showing support is to be found at 1.8162 while resistance is found at 1.9643.

However, if we turn to the medium-term charts (6 weeks to 9 months) we note that momentum favours the British pound over the New Zealand dollar.

Momentum going forward is backed by 5 bullish indicators versus 0 bearish indicators.

Traders looking at the medium-term setup should be aware of support at 1.8262 and resistance at 1.9630.

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