GBP/NZD is approaching a key potential support zone after turning lower from a previous resistance.
Think the pair could extend a long-term trend in the next few days?
We’re setting our sights on GBP/NZD’s daily chart!
GBP/NZD Daily Forex Chart by TradingView
The Bank of England (BOE) takes the stage this week, and traders think Governor Bailey and his crew could sound a bit less dovish compared to other central banks lining up in the days ahead.
At the same time, the New Zealand dollar may run into some profit-taking after last week’s strong rally, especially since Reserve Bank of New Zealand (RBNZ) Gov. Hawkesby had leaned dovish in his remarks.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the New Zealand dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/NZD has had a rough start to September, slipping from the 2.3000 handle down toward 2.2750 as traders shift their focus to easing tariff worries and growing optimism over a Fed rate cut.
Right now, the pair is hanging around 2.2750, which lines up with the 50% Fibonacci retracement of August’s upswing and sits close to the 100 SMA and a long-term trend line support. This zone also happens to match up with a resistance area that held from May through July.
If buyers step in here, green candles above 2.2750 could spark a bounce toward 2.2800 and maybe even a run at 2.3000 or 2.3200 for fresh 2025 highs.
But if sellers keep control, the downswing could drag GBP/NZD back to 2.2600 or even lower toward the trend line and S1 support at 2.2442.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
