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 -1. and Fundamental Score for NZD is -3. So, base on the Fundamental Score, we predict mid-term upside price movement.

Market Overview & Performance

In the current trading session, "London & New York", Market risk sentiment is Strong Risk-OFF. The United States Dollar and Yen recorded the strongest performance, while the British pound and EUR are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a -0.17% decrease against us dollar.
Euro "EUR", performance has been -0.29% down so far
Pond "GBP", performance has been -0.31% down as of now
Australian dollar "AUD", has dropped by -0.2%
New Zealand dollar "NZD", has dropped by -0.27%
Japanese YEN "JPY", experienced -0.02% fall
Swiss franc "CHF", experienced -0.27% fall so far
Canadian dollar "CAD", has lost -0.24%
Market risk sentiment is OFF, Investors seek safety, favoring safe-haven currencies and assets while selling off riskier investments.

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 75% 25% ratio. 1870 long pos and 876 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 2.27843.
Technical trend is Sell, So If the pair continues to weaken, this support could become a significant area to watch for potential reversal or consolidation.
On the upside, there is key resistance near 2.30707. Technically, If the pair continues to the upside, this resistance level could become a significant area to watch for sell entery potential.