Pound-to-New Zealand Dollar Rate Week Ahead Forecast: Bull Flag Signalling Potential For More Upside

Studies of the GBP/NZD charts suggest the pair may be forming a bullish continuation pattern with more upside expected in the near-term.

The Pound-to-New Zealand Dollar rate was trading around 1.9603 at the beginning of the new week, relatively unchanged from the week before, but studies of the charts suggest balanced risks of either a break higher or lower over the coming five days. 

The Pound-New Zealand Dollar exchange rate may continue to churn sideways beneath key resistance at 2.00, but eventually it could break higher if an established uptrend resumes.

The New Zealand Dollar extended a short-term recovery on Thursday in the wake of guidance from the Reserve Bank of New Zealand that interest rates cuts "are working" and that the central bank is unlikely to resort to unconventional policy such as quantitative easing.

The New Zealand Dollar was higher Wednesday after the Reserve Bank of New Zealand (RBNZ) prompted investors to rethink earlier wagers that it would cut Kiwi interest rates again as soon as November, which has prompted some to tip the Pound-to-Kiwi rate for more losses in the days ahead.

The Pound ceded ground to a firming New Zealand Dollar Tuesday and is being tipped by TD Securities to continue retreating from the Kiwi currency over the coming days and weeks, while analysts at Barclays are forecasting the exchange rate will fall sharply all the way into year-end and beyond. 

GBP/NZD tipped to stall as traders take profit on bullish bets, but trend still bullish and expected to resume eventually.

The Pound-to-New-Zealand-Dollar rate was trading around 1.9533 at the start of the new week after closing the previous one 2.47% higher on Friday, although studies of the charts suggest the pair is set to continue rising after having established a new short-term uptrend.