GBP_NZD (400 Pip Range Bound)
The GBP/NZD currency pair has recently reached a 9-year high, indicating significant strength in the British Pound against the New Zealand Dollar. Based on the provided information and search results, here's a detailed analysis for the coming 3 days:
Fundamental Analysis
The GBP/NZD pair has been showing a strong bullish trend, driven by several factors:
1. Economic Divergence: The UK economy has been showing signs of resilience, while New Zealand's economy faces challenges, contributing to the pair's upward momentum.
2. Interest Rate Differentials: The Bank of England's monetary policy stance compared to the Reserve Bank of New Zealand's approach may be supporting the Pound's strength against the Kiwi.
3. Global Risk Sentiment: As a risk-sensitive currency, the New Zealand Dollar may be under pressure due to global economic uncertainties, benefiting the relatively safer Pound.
Technical Analysis
Short-term technical indicators suggest a potential for both bullish continuation and a possible correction:
1. Trend Analysis: The overall trend remains strongly bullish, with the pair making new highs and trading above key moving averages.
2. Resistance Levels: The pair recently reversed from a key resistance level at 2.1840, which could act as a ceiling for further gains in the short term.
3. Support Levels: Key support is identified at 2.1600, which could be tested if the pair experiences a pullback.
4. Momentum Indicators:
a. The daily Stochastic indicator suggests overbought conditions, which may lead to a short-term correction.
b. The 14-day RSI is at 68.10, approaching overbought territory but not yet extreme.
5. Moving Averages: The pair is trading above both the 50-day SMA (2.16) and the 200-day SMA (2.13), confirming the strong uptrend.
Short-term Forecast (Next 3 Days)
Consolidation: The pair should trade within the range of 2.17-2.21 as it consolidates after the recent strong move.
Volatility is expected to remain high, with an average daily range of about 0.54%.
Conclusion
While the long-term trend for GBP/NZD remains bullish, the pair may experience short-term volatility and potential correction after reaching a 9-year high. Traders should watch key technical levels and be aware of any fundamental developments that could impact either currency.
Citations:
[1] fxpro.news/tech-analysis/gbpnzd-wave-analysis-9-december-2024-20241210/
[2] centralcharts.com/en/7326-gbp-nzd/analysis/501611-gbp-nzd-1h
[3] centralcharts.com/en/7326-gbp-nzd/analysis/502080-gbp-nzd-15min
[4] coincodex.com/forex/gbp-nzd/forecast/
[5] ofx.com/en-au/forex-news/historical-exchange-rates/gbp/nzd/
[6] icmarkets.com/blog/wednesday-11th-december-2024-technical-outlook-and-review/
[7] GGBPNZD/SKYLP
[8] icmarkets.com/blog/friday-13th-december-2024-technical-outlook-and-review/
[9]
GBPNZD
[10] au.investing.com/currencies/gbp-nzd-historical-data
Fundamental Analysis
The GBP/NZD pair has been showing a strong bullish trend, driven by several factors:
1. Economic Divergence: The UK economy has been showing signs of resilience, while New Zealand's economy faces challenges, contributing to the pair's upward momentum.
2. Interest Rate Differentials: The Bank of England's monetary policy stance compared to the Reserve Bank of New Zealand's approach may be supporting the Pound's strength against the Kiwi.
3. Global Risk Sentiment: As a risk-sensitive currency, the New Zealand Dollar may be under pressure due to global economic uncertainties, benefiting the relatively safer Pound.
Technical Analysis
Short-term technical indicators suggest a potential for both bullish continuation and a possible correction:
1. Trend Analysis: The overall trend remains strongly bullish, with the pair making new highs and trading above key moving averages.
2. Resistance Levels: The pair recently reversed from a key resistance level at 2.1840, which could act as a ceiling for further gains in the short term.
3. Support Levels: Key support is identified at 2.1600, which could be tested if the pair experiences a pullback.
4. Momentum Indicators:
a. The daily Stochastic indicator suggests overbought conditions, which may lead to a short-term correction.
b. The 14-day RSI is at 68.10, approaching overbought territory but not yet extreme.
5. Moving Averages: The pair is trading above both the 50-day SMA (2.16) and the 200-day SMA (2.13), confirming the strong uptrend.
Short-term Forecast (Next 3 Days)
Consolidation: The pair should trade within the range of 2.17-2.21 as it consolidates after the recent strong move.
Volatility is expected to remain high, with an average daily range of about 0.54%.
Conclusion
While the long-term trend for GBP/NZD remains bullish, the pair may experience short-term volatility and potential correction after reaching a 9-year high. Traders should watch key technical levels and be aware of any fundamental developments that could impact either currency.
Citations:
[1] fxpro.news/tech-analysis/gbpnzd-wave-analysis-9-december-2024-20241210/
[2] centralcharts.com/en/7326-gbp-nzd/analysis/501611-gbp-nzd-1h
[3] centralcharts.com/en/7326-gbp-nzd/analysis/502080-gbp-nzd-15min
[4] coincodex.com/forex/gbp-nzd/forecast/
[5] ofx.com/en-au/forex-news/historical-exchange-rates/gbp/nzd/
[6] icmarkets.com/blog/wednesday-11th-december-2024-technical-outlook-and-review/
[7] GGBPNZD/SKYLP
[8] icmarkets.com/blog/friday-13th-december-2024-technical-outlook-and-review/
[9]
GBPNZD[10] au.investing.com/currencies/gbp-nzd-historical-data
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.