NZD/GBP to see fresh record highs during the next few months - Westpac

Imre Speizer, Strategist at Wespac published the latest outlook on NZD/GBP, highlighting that the cross reached a fresh post-float high following the Brexit vote.

Key Quotes:

“NZD/GBP jumped by 9% after the Brexit vote on 24 June and has risen by another 13% since, with a post-float high of 0.5950 made on 7 Oct (following PM May’s announcement).”

“We expect to see fresh record highs during the next few months, with any corrective declines limited to 0.5650.”

“Overbought momentum indicators suggest one such correction looms during the next week or two. Positioning also indicates a high risk of a near term correction.”

“While the cross is at the highest level since the NZD was floated in 1985, it remains below the 0.6285 high since the GBP was floated in 1971.“