GBPNZD has recently bounced off the top of its range at the 1.7900 major psychological level and is making its way to the bottom at 1.7400. If this holds as support, another bounce back to the resistance could take place.
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside, which means that the support is more likely to hold than to break. These moving averages could also hold as near-term inflection points.
Stochastic is pulling up to show a return in buying pressure as well, which signals that bulls could push price back up for another test of resistance.
UK Rightmove HPI printed a 0.9% drop in price levels versus the earlier 0.1% uptick. Only the CBI industrial orders expectations report is due today and a dip from 10 to 8 is eyed.
In New Zealand, credit card spending ticked up by 7.2%, slower than the earlier 8.3% gain. There are no reports due from New Zealand for the rest of the day, leaving the Kiwi at the mercy of market sentiment.
More volatility for this pair could be seen later in the week with the release of the UK preliminary GDP and the Jackson Hole Symposium. New Zealand also has its trade balance lined up on Thursday’s early Asian session.
By Kate Curtis from Trader’s Way