Analysis of the GBP/NZD pair

The New Zealand pound on an economic level

The GBP/NZD pair declined on Thursday after reaching a seven-week high the previous day.

This surge occurred despite the Reserve Bank of New Zealand (RBNZ) raising interest rates by 25 basis points, as expected.

This led markets to speculate that monetary policy would remain unchanged next month after two consecutive rate hikes this year.

Faraz Syed, an economist at Citi, said: "Our dovish outlook on the RBNZ remains unchanged. We believe 2.75% is the upper limit of this cycle."

He added, "We expect a slowdown in economic activity indicators over the coming weeks and months, which will likely prevent the RBNZ from raising interest rates further."

Meanwhile, we await a speech tomorrow from Andrew Bailey, Governor of the Bank of England.

The New Zealand Dollar (GBP/NZD) technically

The GBP/NZD pair retreated today to near 2.3020, after rising yesterday to around 2.3245, its highest level in seven weeks.

The pair is currently attempting to find support at the hourly uptrend line, which is centered around 2.2950/60.

From this level, we can consider buying the pair, supported by a positive divergence on the hourly MACD indicator.

Our initial target is 2.3090, followed by 2.3240.

We should maintain a stop-loss order below 2.2780.