GBPNZD can consolidate following a period of losses that have left it deeply oversold.

The New Zealand Dollar faces a "longer and tougher fight" according to the most recent analysis of the currency from the global banking giant HSBC.

The British Pound continues to undergo a corrective pullback against the New Zealand Dollar that can extend further over the coming days, although Thursday's Bank of England decision and some important data releases out of New Zealand will offer two-way volatility.

The New Zealand Dollar's decline could be done according to new forecasts from Westpac, the lender and investment bank.

The Pound has fallen 2.30% from its 2023 highs against the New Zealand Dollar thanks to a recent cooling in Bank of England interest rate hike expectations and improved sentiment towards China.

The Pound to New Zealand Dollar exchange rate remains in a broad multi-month uptrend but short-term is subject to a pullback.

GBPNZD remains in a strong uptrend, short- and medium-term favour gains, empty calendar leaves central bank divergence in focus.

GBPNZD starts the new week on the defensive but there is a high likelihood that losses will be recouped over the coming days.

GBPNZD has been subject to a strong technical uptrend in 2023 and there is little evidence to suggest now is the time to bet on a meaningful reversal.

GBPNZD in a technical uptrend, 2023 highs can be retested and broken, but UK jobs report on Tuesday and RBNZ on Wednesday are risks.

Analysis from Capital Economics shows the New Zealand Dollar is likely to struggle as the Reserve Bank of New Zealand will likely lead the next interest rate-cutting cycle, a development that is potentially not too far given fresh warnings from a domestic bank that the economy faces a double-dip recession.

The New Zealand Dollar begins the new week with a notable gain against most G10 currencies, extending its upward momentum from Friday, supported by a firm Asian equity market session and positive investor sentiment.

"Narrowing interest rate differentials reduce a key NZD tailwind" - ASB.

Relief for New Zealand Dollar sellers might be in prospect in the second half of 2023 according to Westpac which has released forecasts showing a recovery against the British Pound.

GBPNZD sees 2023 high close by, technical studies remain bullish, UK inflation and Bank of England pose two-way risk.

GBPNZD has unwound overbought conditions, but momentum remains positive on most timeframes. Watch NZ current account and GDP data this week, UK jobs and GDP data also pose key risks.

GBPNZD was overbought, consolidation likely, multi-week GBP upside still preferred.

GBP/NZD is trading back at the psychologically important 2.0 level at the start of a new week which could see the Kiwi currency resume some of its 2023 underperformance.

GBPNZD has recovered the psychologically significant 2.0 level ahead of the weekend but peaking Bank of England rate hike expectations and a slowing economic data pulse could mean fresh 2023 highs are out of reach in the near term.

GBP/NZD increasingly comfortable at 2.0, "ugly" technical picture for NZD, says ANZ's Croy.