GBP/NZD chart on Trading View used for analysis
FxWirePro Currency Strength Index for GBP/NZD: Bias Bullish
FxWirePro's Hourly GBP Spot Index was at 104.723 (Bullish)
FxWirePro's Hourly NZD Spot Index was at -131.613 (Bearish)
Technical Analysis: Bias Bullish
- Breaks above 200W SMA and 38.2% Fib at 2.0
- Hits new 28-month highs at 2.02
- Bullish "Three White Soldiers" pattern seen on daily charts
- Momentum studies are bullish, MACD shows bullish crossover on signal line
Fundamental View:
- GBP buoyed as Brexit negotiations appear to be back on track after May's successful speech at the Conservative Party conference.
- Reports suggest Theresa May is inching towards a compromise on the Irish border issue and bulls are looking for this to finally break the deadlock.
- The pound could rally hard on any positive development on Brexit for which the markets are not priced in.
Support levels - 2.0 (38.2% Fib), 1.99 (5-DMA), 1.9861 (20-DMA)
Resistance levels - 2.0433 (Jan 2014 high), 2.1011 (50% Fib)
Recommendation: Stay long on dips, SL: 1.99, TP: 2.04/ 2.10/ 2.20
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
