Forex Market: GBP/NZD daily forecast

During yesterday’s trading session GBP/NZD traded within the range of 1.9719-1.9803 and closed at 1.9782.

At 7:26 GMT today GBP/NZD was losing 0.23% for the day to trade at 1.9736. The pair touched a daily low at 1.9722 at 6:15 GMT, breaching the first key support.

Fundamental view

Annualized industrial output in the United Kingdom probably expanded 2.8% in April, following another 2.3% increase during the preceding month. In monthly terms, industrial production probably increased 0.4% in April, after declining 0.1% in the previous month. The index presents the change in the total inflation-adjusted value of production in sectors such as manufacturing, mining and energetics.

UK’s annualized manufacturing production, a short-term indicator which accounts for almost 80% of nation’s industrial output, probably expanded 4% in April. In March manufacturing output rose at an annualized pace of 3.3%. In monthly terms, production probably increased 0.4% during April. As it is a key component of country’s Gross Domestic Product, in case manufacturing production expanded more than projected, this would have a bullish effect on the sterling.

The Office for National Statistics (ONS) will release the official figures at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/NZD manages to breach the first resistance level at 1.9817, it will probably continue up to test 1.9852. In case the second key resistance is broken, the pair will probably attempt to advance to 1.9901.

If GBP/NZD manages to breach the first key support at 1.9733, it will probably continue to slide and test 1.9685. With this second key support broken, the movement to the downside will probably continue to 1.9649.