GBPNZD Trading Higher
The recent GBPNZD 1.9690 breakout idea is well on track to hitting its target at 2.0064. The pair has been firmly higher over the start of the year with GBP benefitting from reduced omicron fears. With data showing that the variant is far milder than previous strains, the UK government has confirmed that the UK will not be entering lockdown this month.
While there are still risks in the outlook, the market is hopeful that if lockdown can be avoided during this wave, the end of the pandemic will be one step closer. With that in mind, focus is returning back to BOE rate hike expectations with the market currently pricing in around an 80% chance of a hike in February, likely to keep GBP supported near term. With the retail market currently holding a more than 80% short position, there is plenty of scope for the current rally to continue.
Technical Views
GBPNZD
The breakout above the 1.9690 level has seen price accelerating quickly higher within the bull channel from Q4 2020 lows. With both MACD and RSI bullish here, the focus is on a continued push higher towards the 2.0064 level target while the bull channel holds.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.