Pound to New Zealand Dollar Forecast: 2.1497 in Three Months

GBPNZD has unwound overbought conditions, but momentum remains positive on most timeframes. Watch NZ current account and GDP data this week, UK jobs and GDP data also pose key risks.

The New Zealand Dollar has pared away some of its late May losses and could further undermine the bullish trend in GBP/NZD if the Kiwi economy comes across as more resilient than its UK counterpart over the coming week but there are also numerous risks that could yet sustain Sterling near its recent highs.

GBPNZD was overbought, consolidation likely, multi-week GBP upside still preferred.

The Pound to New Zealand Dollar exchange rate was ridden down to the lowlands of its May range last week but could get an opportunity rally back above the 2.0 level in the days ahead if either UK economic data is obliging, or if the Reserve Bank of New Zealand (RBNZ) stays April's interest rate course.

The Pound to New Zealand Dollar rate could be volatile around the 2.0 level in the days ahead and vulnerable in the weeks thereafter as China's Renminbi migrates along a southbound highway in response to growing concerns in the market about the outlook for the world's second-largest economy. 

GBP/NZD is trading back at the psychologically important 2.0 level at the start of a new week which could see the Kiwi currency resume some of its 2023 underperformance.

GBPNZD has recovered the psychologically significant 2.0 level ahead of the weekend but peaking Bank of England rate hike expectations and a slowing economic data pulse could mean fresh 2023 highs are out of reach in the near term.

The Pound to New Zealand Dollar exchange rate has receded from this year's highs in recently toppy trade and could remain choppy around the nearby 2.0 level through the remainder of the week without a potentially unlikely dovish surprise from the Bank of England (BoE) on Thursday.

The Pound to New Zealand Dollar exchange rate entered the new month near one-year highs following six weeks of unbroken gains but could now struggle for further traction as attention turns to Kiwi job figures due out on Tuesday and May's Bank of England (BoE) interest rate decision next week.

The  Pound to New Zealand Dollar rate fell from near six-month highs in ANZAC Day trade but could be in line for further losses in the days ahead if BofA Global Research is right about Sterling being overbought, and even more so once the May month gets underway. 

GBP/NZD increasingly comfortable at 2.0, "ugly" technical picture for NZD, says ANZ's Croy.

The Pound to New Zealand Dollar exchange rate rose to its highest since October in the midweek session after Statistics New Zealand figures showed Kiwi inflation falling to its lowest level for more than a year but some analysts are wary of the outlook for Sterling.

The New Zealand Dollar has lagged behind many other major currencies thus far in the year but updated forecasts from Commonwealth Bank of Australia suggest the Kiwi could underperform further in the short-term while warning of divergence between AUD/NZD and EUR/NZD from here.

GBP/NZD rose above 2.0 in the opening half of the week and could be likely to remain buoyant above roughly 1.98 if the Kiwi remains an underperformer among major currencies in the days and weeks ahead.

The Pound to New Zealand Dollar exchange rate has rallied strongly over recent weeks but will risk being stopped in its tracks this week if BofA Global Research economists are on the money with their forecast for Wednesday's Reserve Bank of New Zealand (RBNZ) interest rate decision. 

The New Zealand Dollar is set to take the limelight midweek when the RBNZ is expected to raise interest rates by a further 25 basis points as it continues its fight against elevated domestic inflation levels.

The Pound to New Zealand Dollar exchange rate opened the new week with a rally to fresh five-month highs but would likely be susceptible to any mid-week rebound by the Australian Dollar and might also struggle if a tenative recovery in global markets continues through the coming days.

The Pound to New Zealand Dollar exchange rate extended a six-week rally in the opening session of the week and could yet rise further in the days ahead but such an outcome would bring Sterling into contact with a Fibonacci resistance at 1.9751, which could frustrate the ascent. 

The Pound to New Zealand Dollar exchange rate reached five-month highs early in the new week before being beaten into retreat by a rallying Kiwi that has left Sterling at risk of a deeper correction with scope for GBP/NZD to fall as far as key moving averages just below 1.93 in the days ahead.

The Pound to New Zealand Dollar exchange rate has climbed above the top of a five-month range over last week and could remain buoyant in the days ahead, albeit at levels that are likely to remain below the recent highs.