GBP/NZD Rebounds Support Area and Presents New Long Setup

9 мая 2023 г.

During the Asian Session, the currency pair GBP/NZD dropped to the level of 1.9870, which was caused by the major currency pair GBP/USD (the Cable) losing momentum due to the UK's inflation concerns. However, despite the disappointment in the UK's politics, Brexit optimism prevailed, enabling Cable buyers to regain control. On Monday, during the UK holiday, the Cable's decline from its highest levels since April 2022 was noticeable. Nonetheless, the fresh optimism surrounding the Bank of England's positive outlook, coupled with the US Dollar's inability to sustain recent gains, encouraged Pound Sterling buyers. As a result of this positive sentiment towards the Sterling, the technical analysis of the GBP/NZD pair showed a divergence on the Hourly timeframe, with the stochastic indicator indicating an oversold area following the price rebound on a strong previous support level. Based on this analysis, we suggest a new long setup for GBP/NZD.