GBP/NZD Breaks Through 2.1400, 100-DMA Resistance
pair advanced further on Tuesday to move past 100-day SMA for the first
time since Nov. 2015 to currently trade at eight week high level of
The pair extended its gains ahead of the key RBNZ's semi-annual Financial Stability Report, which will be followed by Governor Graeme Wheeler's press conference and his testimony about the report before a parliamentary committee. Market players will be looking forward for clues of an imminent interest rate cut at RBNZ's next policy meeting in June. Moreover, falling dairy prices has also been a key drag for the NZ Dollar.
From technical perspective, traders would now be awaiting for a sustained trade above 2.1400 handle that would help the British Pound-New Zealand dollar cross to storm higher in the near-term.
Technical levels to watch
On a sustained trade above 2.1400 mark, the pair could immediately dart towards 2.1520-25 resistance near marked by 23.6% Fibonacci retracement level of 2.5291-2.0358 downfall. A clear break through this immediate resistance now seems to open room for extension of the pair's upward trajectory, initially towards 2.1700-30 intermediate horizontal resistance and eventually towards 2.2000 psychological mark resistance in the near-term.
On the flip side, 2.1325 level now seems to act as immediate support. This is followed by support near 2.1125 area. Even if the pair fails to hold these immediate support levels, any subsequent weakness might now be restricted at 2.0850 horizontal support, which now seems to have emerged as near-term strong support for the pair.