GBP/NZD Breaks Through 2.1400, 100-DMA Resistance
The GBP/NZD
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
2.1400.
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.
