Comprehensive GBP/NZD Analysis for October 4, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of GBP/NZD for 4th October 2023. 

Key Insight: RBNZ Interest Rate Decision and Economic Outlook

• RBNZ Decision: The Reserve Bank of New Zealand (RBNZ) has opted to maintain the interest rate at 5.50%.
• Consistency: Notably, this marks the third consecutive time that the central bank has refrained from adjusting interest rates.
• GDP Growth: Despite a stronger-than-expected GDP growth in the June quarter, the overall growth outlook remains subdued.
• Global Economic Risks: The RBNZ Committee has expressed concerns about downside risks to the global economic growth outlook in the medium term.
• Short-Term Currency Trends: In the short term, the New Zealand dollar may face a depreciation trend.

Technical Analysis: A Closer Look on GBP/NZD Trading Charts

GBP/NZD Daily Chart Insights

Reversal Structure: The daily chart illustrates a clear reversal structure, with the 240-day moving average acting as a significant resistance point.

( Daily chart of GBP/NZD, source: Ultima Markets MT4) 

The stochastic oscillator technical indicator has also left the oversold area after being oversold for nearly 9 trading days. The market may continue to rebound and rise today. 

GBP/NZD 4-Hour Chart Observations

• Motive Wave: A five-wave upward structure has emerged since the end of September, signaling a potential motive wave.
• Moving Average Test: The market has surged rapidly and is nearing the 65-period moving average, a level to monitor for potential breakout.

(4-hour chart of GBP/NZD, source: Ultima Markets MT4) 

Pivot Indicator

(1-hour chart of GBP/NZD, source: Ultima Markets MT4) 

Central Price: According to Ultima Markets MT4 pivot indicator, the central price for the day stands at 2.04099.

• Bullish Outlook: A price movement above 2.04099 could trigger an upward momentum, targeting 2.05336 as the first level of resistance and 2.06164 as the second.
• Bearish Outlook: A dip below 2.04099 may indicate a bearish trend, with the first support level at 2.03301 and the second at 2.02075.

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