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GBP/NZD Technical Analysis - GBP/NZD Trading: 2023-05-31
GBP/NZD Technical Analysis Summary
Above 2.055
Buy Stop
Below 1.955
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
GBP/NZD Chart Analysis
GBP/NZD Technical Analysis
On the daily timeframe, GBPNZD: D1 has broken out to the upside from a long-term wedge and flag pattern. Several technical analysis indicators have formed signals for further upward movement. We do not exclude a bullish trend if GBPNZD: D1 rises above its last high and the upper Bollinger Band line at 2.055. This level can be used as an entry point. The initial risk limit can be set below the Parabolic signal, the last lower fractal, the 200-day moving average line, and the lower Bollinger Band line at 1.955. After opening a pending order, we move the stop along with the Bollinger Bands and Parabolic signals to the next fractal low. This way, we adjust the potential profit/loss ratio in our favor. More cautious traders can switch to the four-hour chart after entering the trade and set a stop loss, moving it in the direction of the movement. If the price surpasses the stop level (1.955) without activating the order (2.055), it is recommended to remove the order: internal changes are taking place in the market that were not accounted for.
Fundamental Analysis of Forex - GBP/NZD
Investors fear that the Reserve Bank of New Zealand (RBNZ) rate hike may not be enough. Will GBPNZD quotes continue to rise?
Last week, the RBNZ raised its interest rate by 0.25% to 5.5%. This is its highest level since 2008, during the global economic crisis. The New Zealand dollar reacted to this by weakening, as RBNZ officials stated the need for a prolonged pause in further monetary policy tightening. Market participants are concerned that the current rate level may be insufficient to reduce inflation. In the first quarter of 2023, the New Zealand Consumer Price Index stood at 6.7% y/y. On May 31st, ANZ New Zealand Business Confidence for May will be released, and the forecast is negative. This economic indicator has been negative since June 2021. The pound exchange rate may be influenced by the UK S&P Global/CIPS Manufacturing PMI, which will be published on June 1st
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