GBP/NZD breaks through 2.1400, 100-DMA resistance

By FXStreet 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 …read more

Source:: FX Street