GBPNZD Analysis

Introduction

The GBP/NZD reflects the economic relationship between the UK and New Zealand. The price of this pair is influenced by the monetary policies of the Bank of England (BoE) and the Reserve Bank of New Zealand (RBNZ), with interest rate decisions being a major factor. The GBP is sensitive to political events in the UK, such as Brexit, while the NZD is influenced by commodity prices, particularly dairy and agriculture. The pair is also influenced by global risk sentiment, with the GBP often benefiting from risk-on sentiment, while the NZD strengthens when commodity prices rise.

Fundamentals and Interest Rates

The Bank of England policy is Dovish with the (BOE) current Interest rate 4.25%. Latest change was May 08, 2025 (-25bp)%.
On that side the Reserve Bank of New Zealand policy is Dovish and (RBNZ) has set its interest rate to 3.5% by latest change, Apr 09, 2025 (-25bp).
(BOE) Higher interest rates generally lead to higher returns on investments denominated in GBP. This tends to attract foreign capital into GBP assets.

Based on the economic and macro fundamental data, The Fundamental Bias of GBP is -- Neutral and for the NZD is Weak Bullish.
Ziwox considering Weak Bearish bias for this asset and we expect prices to decline in the long-term. and Fundamental Score for NZD is 4. So, base on the Fundamental Score, we predict mid-term downside price movement.

Market Overview & Performance

In the current trading session, "Tokyo & London", Market risk sentiment is Mix. The Yen and Switzerland Frank recorded the strongest performance, while the Australian dollar and United States Dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 0.16% increase against us dollar.
Euro "EUR", performance has been 0.11% up so far
Pond "GBP", performance has been 0.02% up as of now
New Zealand dollar "NZD", has risen by 0.06%
Japanese YEN "JPY", experienced 0.19% rise
Swiss franc "CHF", experienced 0.17% rise so far
Canadian dollar "CAD", has gained 0.11%

Market Sentiment and Positioning

GBP COT (Commitments of Traders):

Institutions Net Position on >British Pound is 27216 included 89540 long, 62324 short and -2019 position changed from last week.
So they mainly have a bullish view on this asset and bought GBP for higher prices in long-term.
Last week -2019 repositioning Indicates closing positions, short-term profit-taking, or a general pessimism about prices.

NZD COT (Commitments of Traders):

Institutions Net Position on >Newseeland Dollar is -22612 included 10207 long, 32819 short and 523 position changed from last week.
So they mainly have a bearish view on this asset and sold NZD for lower prices in long-term.
Last week 523 repositioning Indicates closed positions and short-term profit-taking.

Retail Traders:

Crowd traders or Retail traders are bullish on the GBPNZD with 21% 79% ratio. 686 long pos and 1173 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability GBPNZD prices may continue to rise.

Technical Levels and Support/Resistance

The GBPNZD pair is approaching a critical technical support level near 2.24582.
Technical trend is BUY, If the pair continues to weaken, this support could become a good area to enter a long positions.
On the upside, there is key resistance near 2.27362. Technically, A break above this resistance could signal a shift in momentum, but need to get a confirmation in this area due to the reversal or correction potential.