The GBP/NZD chart on the daily interval starts to look interesting. This year we have witnessed a stable upward trend. The weakness of the New Zealand currency was mainly related to the trade conflict between the USA and China. There are considerable fears about whether a trade war will not lead to a strong slowdown in China. This, in turn, would translate into the weakness of the New Zealand economy. It is possible, however, that a lot of this has already been valued, as the growth has been going on for almost half a year.
It is, therefore, possible that the time is now coming for the market to price the British uncertainty related to Brexit. Any proposals made by Prime Minister May are immediately rejected, as is the recent amendment to the divorce agreement with the EU, which allows for a second referendum. The opposition leader quickly rejected it. This gives rise to further uncertainty about the fate of the United Kingdom, and the pound loses out on it. The technical outlook suggests that the trend may change. A well-respected trend line seems to be breaking and the long upper shadows of the last candles suggest possible declines.
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