GBP/NZD has recently found resistance at the 2.0000 major psychological level, which lines up with the top of the online currency trading rising channel on its 4-hour forex time frame. This could be a sign that the pair is in for more losses, as it moves towards the bottom of the channel around the 1.9500 handle.
However, stochastic is already indicating oversold conditions, which means that pound bulls could be ready to push the pair back up sooner or later. In that case, GBP/NZD could find online currency trading support at the mid-channel area of interest or at its current levels at 1.9800.
Online Currency Trading Forecast
Stronger online currency trading selling momentum could take the pair to the bottom of the channel, especially if data from the UK turns out weaker than expected. Manufacturing reports have missed expectations so far and the upcoming jobs release might also churn out bleak figures. Also due this week is the BOE inflation report, which might contain revised forecasts from policymakers. Downgrades in growth and inflation estimates might lead to more pound weakness.
On the other hand, upbeat data could lead to rallies for this pair and potentially another test of the 2.0000 major psychological resistance. An upside break from the online currency trading channel resistance would mean that a stronger uptrend is about to happen for GBP/NZD.
As for the New Zealand dollar, the weakness in the country’s labor data and dairy prices have been weighing on the currency so far. Risk aversion has also been negative for the higher-yielding currency and the prospect of more geopolitical tension in Iraq, Israel, and Russia could mean more online currency trading losses for the Kiwi.
If the pair stays range bound though, it could continue to move back and forth between the 1.9800 handle and the 2.0000 mark in the next few days.
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