May. 7, 2021
After starting the day at 1.92 GBP/NZD dropped to 1.9177, hitting its lowest point in 2 months, it later recovered 43 pips and is now trading at 1.922 (Trade GBP/NZD with FXTM now).
The uptick comes while some more positive signs for GBP/NZD are out as the United Kingdom's Construction PMI fell short of the 62.3 projections, at 61.6 and continued its downward trajectory from the previous figure of 61.7.
Nevertheless, United Kingdom Services PMI beat expectations of 60.1 with new data release of 61. This is also a step forward from the previous data of 56.3.
At the same time, United Kingdom's BoE Interest Rate Decision (May) published yesterday at 11:00 AM came out at 0.1. The indicator value matched both the projected value and the previous data of 0.1.
In terms of trend indicators, we can see that at 1.928, GBP/NZD made an initial breakout above the 10 day Simple Moving Average, an indication of a positive trend. Asset volatility analysis shows that the lower Bollinger band is at 1.9141, indicating further gains might be next. Japanese candlesticks formations detected today are the "morning star”, Whenever it appears on top of a bullish overall trend, some traders would consider this an indication of a reversal, of course. However, although the GBP/NZD is green today and was as high as 1.9307, it seems to be slowing down slightly and moving away from the 1.9468 resistance line, and is now 247 pips below it.
Overall, looking at the technical analysis landscape, it seems GBP/NZD likely to continue pointing upward in the short term.
The GBP/NZD shows positive signs, other assets are also on par: Euro is up by 102 pips(0.85%), making its largest single-day gain since December 2020.
At the same time, Singapore dollar fell by 0.61%, its largest drop since May 2020. EUR/CAD hits a 1 year low, as it drops to 1.4649 for the first time in 2 months, Pound/Dollar rises above the 1.4 level.
