GBP/NZD simply broke above a consolidation sample!

Can the pair make new 2023 highs this week?

Or is the pair about to see some severe pullback?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out EUR/NZD for a possible reversal after the RBNZ’s fee hike. You should definitely take a look at if it’s nonetheless a great play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Contemporary Market Headlines & Financial Knowledge:

EIA: U.S. crude inventories fell by 12.5 million barrels vs. estimates of an 800K-barrel improve within the week to Could 19

Germany’s Q1 2023 GDP was revised from 0.0% to -0.3%, placing the economic system in a technical recession after This fall’s 0.5% decline

Sturdy wage expectations push Germany’s shopper confidence from -25.8 to -24.2, marking the strongest degree since April 2022 and eighth consecutive improve.

Value Motion Information

Overlay of NZD Pairs 15-min

There weren’t quite a lot of contemporary catalysts throughout the Asian session, which implies that extra merchants had time to cost in yesterday’s occasions.

That additionally meant extra losses for NZD after the Reserve Financial institution of New Zealand (RBNZ)’s dovish fee hike yesterday.

In the meantime, extra risk-takers jumped ship as a scarcity of a U.S. debt ceiling deal and Fitch placing U.S. credit score on “unfavourable” watch bought them jittery.

The U.S. greenback nonetheless gained pips in opposition to its main counterparts, however NZD noticed heavier losses throughout the board.

U.Ok.’s CBI realized gross sales at 10:00 am GMT
U.S. preliminary GDP at 12:30 pm GMT
U.S. preliminary GDP worth index at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
U.S. pending residence gross sales at 2:00 pm GMT
Tokyo’s core CPI (y/y) at 11:30 pm GMT
Australia’s retail gross sales at 1:30 am GMT (Could 26)

Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️

GBP/NZD 14-minute Foreign exchange Chart Chart by TV

In case you missed it, the combo of RBNZ’s “dovish hike” and a higher-than-expected U.Ok. core CPI bought merchants shopping for GBP and promoting NZD yesterday.

The identical themes carried over to at the moment and now GBP/NZD has damaged above a pennant-type consolidation on the 15-minute time-frame.

Can GBP/NZD prolong its features?

Take be aware that the pair is nearly on the R1 (2.0400) of at the moment’s Customary Pivot Factors, which traces up with April’s highs close to the extent.

The pair has additionally already risen by about 50 pips greater than half of its 158-pip every day volatility.

A rejection at 2.0400 opens GBP/NZD to a transfer again to its 2.0300 earlier resistance ranges.

But when merchants don’t let up on shopping for GBP and/or promoting NZD, then GBP/NZD might make new 2023 highs and make a play for February 2022’s highs close to 2.0500.