After a solid run, GBP/NZD is now bumping into a key resistance zone that could give the bulls second thoughts.
Will we see a bearish reversal in the next few days?
We’re taking a closer look at the pair’s 4-hour time frame:
GBP/NZD 4-hour Forex Chart by TradingView
The British pound got a lift last week from the Bank of England’s “hawkish cut” event and its relative immunity to U.S. tariff drama, especially against risk currencies like the New Zealand dollar.
But with a wave of top and mid-tier U.K. data coming up, Sterling’s hot streak could hit a bump.
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 New Zealand dollar and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/NZD has been climbing since late July, but it’s now camped out around the 2.275 mark, the same spot that’s shut the bulls down a couple of times since late May.
Take note that this range resistance is sitting right next to the R2 Pivot Point at 2.2733, which may be enough to make some buyers think twice.
If the pair gets turned away from 2.2750 and R2 Pivot Point, it could slide back toward the 2.2650 area of interest, maybe even down to the mid-range near 2.2550.
On the flip side, a few more solid green candles and a steady hold above that range resistance could open the door for a run toward bigger targets in the 2.2900 – 2.3000 neighborhood.
Whichever bias you end up trading, don’t forget to practice proper risk management and keep up with the potential 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.
