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%. Latest change was Aug 07, 2025 (-25bp)%.
On that side the Reserve Bank of New Zealand policy is Dovish and (RBNZ) has set its interest rate to 2.5% by latest change, Oct 08, 2025 (-50bp).
(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 Weak Bullish and for the NZD is -- Neutral.
Ziwox considering Weak Bullish bias for this asset and we anticipate long-term price increases.
Our Ziwox A, mid-term Fundamental Score for GBP is 2. and Fundamental Score for NZD is -4. So, base on the Fundamental Score, we predict mid-term upside price movement.

Market Overview & Performance

In the current trading session, "New York", Market risk sentiment is Classic Risk-ON. The Gold and Switzerland Frank recorded the strongest performance, while the Yen and British pound are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 1.23% increase against us dollar.
Euro "EUR", performance has been 0.05% up so far
Pond "GBP", performance has been -0.11% down as of now
Australian dollar "AUD", has risen by 0.2%
New Zealand dollar "NZD", has risen by 0.15%
Japanese YEN "JPY", experienced -0.33% fall
Swiss franc "CHF", experienced 0.39% rise so far
Canadian dollar "CAD", has gained 0.12%
Market risk sentiment is ON, This means Investors embrace risk, driving demand for riskier assets and higher-yielding currencies while safe-haven assets weaken.

Market Sentiment and Positioning

GBP COT (Commitments of Traders):

Institutions Net Position on >British Pound is -1964 included 84500 long, 86464 short and 4616 position changed from last week.
So they mainly have a bearish view on this asset and sold GBP for lower prices in long-term.
Last week 4616 repositioning Indicates closed positions and short-term profit-taking.

NZD COT (Commitments of Traders):

Institutions Net Position on >Newseeland Dollar is -21120 included 12295 long, 33415 short and -3116 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 -3116 repositioning Indicates more sell positions and price pressure in short-term.

Retail Traders:

Crowd traders or Retail traders are bullish on the GBPNZD with 52% 48% ratio. 1323 long pos and 965 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability GBPNZD prices may decrease.

Technical Levels and Support/Resistance

The GBPNZD pair is approaching a critical technical support level near 2.30168.
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 2.33669. 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.