NZD/GBP retains upside potential beyond 0.60 multi-month - Westpac

Imre Speizer, Research Analyst at Westpac, explains that NZD/GBP is now trying to break below the technically key 0.5570 level and success on that front would signal a further 4p fall.

Key Quotes

“Now that Article 50 has been triggered, survey data will be increasingly important. Business, retail and PMI surveys are due over the next week but are probably too early to capture sentiment over Brexit finally becoming a reality.”

“3 months ahead: While the shift in MPC bias and firmer inflation data has triggered a paring of GBP shorts, we expect GBP gains to be capped once Brexit negotiations are well underway. Thus, NZD/GBP retains upside potential beyond 0.60 multi-month.”