GBP/NZD looks comfortable inside an identified range after today’s catalysts!
Will the pair head for lower areas of interest before seeing more sustained demand?
Here’s what we’re seeing on the 4-hour time frame:
GBP/NZD 4-hour Forex Chart by TradingView
A surprisingly hawkish call from the Reserve Bank of New Zealand (RBNZ) earlier today sent the New Zealand dollar higher against major currencies, including the British pound.
Sterling did not share that momentum, as traders stay cautious with the U.K. Autumn Budget report only hours away and uncertainty hanging over the currency.
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, which has been stuck in a 650-pip range since September, made a run toward the 3.5000 handle before the RBNZ sent the pair right back into its consolidation zone.
It now sits about 70 pips above the 2.3100 mid-range area, which lines up closely with S1 support at 2.3183. A few more strong bearish candles would suggest the sellers are not finished, opening the door for a slide toward levels like the 2.3000 psychological level or even the 2.2800 range support.
If the candles start showing hesitation and buyers step back in, the downswing could stall mid-range and GBP/NZD may turn higher again, with the 2.3500 area standing out as the first upside target.
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.
