GBP/NZD Down 72 Pips; in an Uptrend Over Past 14 Days

GBP/NZD Price Recap

GBP/NZD enters today at 2.04995 in US dollars, down 72 pips (0.35%) from the day prior. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 18.01% from the day prior, and up 146.81% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/NZD ended up ranking 28th for the day in terms of day-over-day price change. The price chart of GBP/NZD below illustrates.

GBP/NZD Technical Analysis

Notably, GBP/NZD is now close to its 20 and 100 day moving averages, which may act as price barrier for the asset. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 255.3 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. Or to simplify this another way, note that out of the past 10 days GBP/NZD’s price has gone up 6 them.

A final note on correlations: in the recent most week, GBP/NZD has been most correlated with GBP/AUD — not terribly surprising, given that GBP is in both currency pairs. Alternatively, regarding pairs with the lowest correlation to GBP/NZD? Well, EUR/CHF is the pair that holds that distinction for the past week, while GBP/CHF does on a two week basis.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPNZD, with 9 buy signals on our radar and 25 sell signals. This imputes a buy/sell ratio of 0.36, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel and double top technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

HERE IS MY VIEWPOINT ON GBPNZD….PRICE IS CURRENTLY SITTING ABOVE THE MAJOR WEEKLY/DAILY RESISTANCE AND SHOWING SIGNS OF REJECTION WHICH COULD MEAN ITS NOW BECOME SUPPORT….I THINK THIS IS A TRAP AND PRICE WILL PUSH DOWN FURTHER BEFORE A MORE SUBSTANCIAL MOVE TO THE UPSIDE IS MADE.