GBP/NZD chart on Trading View used for analysis
- GBP/NZD holds above 5-DMA support, trades 0.09% higher on the day at 1.9161 at 0630 GMT.
- The pair trades with a bullish bias, eyes 200-DMA at 1.9303. Break above to see further upside.
- Focus on quarterly inflation numbers for Q4 due Wednesday. The kiwi could face further challenges next week if quarterly inflation numbers disappoint.
- Consensus expectation is for annual inflatiob to have eased from 1.9% to 1.8% in the fourth quarter.
- Any miss on forecasts could worry policymakers and push up the odds that the next move in rates would be down.
- UK jobs figures for November will also be watched. If the higher growth in average weekly earnings (in previous quarter) proves sustainable, it could ease fears of a sharper slowdown.
- Next major bull target lies at 200-DMA at 1.9303. Break above could see further upside.
- Break below 5-DMA will see weakness till 20-DMA. Violation at 20-DMA could see further downside.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
