Updated: Oct 8, 2020
This is a very fast moving pair with many currents on both sides. First we have the obvious, BREXIT, as the negotiations go so does Sterling. NZD has it's issues with the RBZ considering going into negative interest rates earlier next year. Below we take a look at both a daily and weekly chart to analyze where this pair may be headed.
The above daily chart shows the pair bumping up against our short-term moving average. We expect this average to give to the upside on any positive progress on Brexit negotiations. Conversely, any further talk in New Zealand about going into negative territory on rates should only add fuel to an upside breakout.
The above weekly chart we are using to show a strong double bottom. It can also be seen trying to move above our long-term weekly moving average. Immediate resistance is our short-term weekly moving average around 2.000 area. This represents over +400 pips when the move materializes. The RSI is just below 50, a move above could be an additional technical catalyst.