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The New Zealand Dollar is looking increasingly handy.
The Pound to New Zealand Dollar exchange rate (GBP/NZD) is in the process of breaking down, which opens the door to levels last seen in May.
As of now, GBP/NZD is below the rising trend line that has dictated an uptrend that has been in place since June last year.
As the chart shows, it has provided solid support for a longer-running uptrend that carried the pair to its highest level since 2016 at 2.32:
Above: GBP/NZD at daily intervals.
There have been some tests below the line, but they were brief and soon bought into, which is consistent with an intact uptrend.
Now, on June 18 2025, we are seeing some concerted price action below the line, which signals the potential for an end to that uptrend.
The next downside target is 2.2200, where we saw support emerge back in early May. Below is the 200-day exponential moving average, currently located at 2.2076.
The New Zealand Dollar is proving relatively perky at the moment, even as Middle East tensions prove decidedly uncomfortable and some significant trade deadlines lurk ahead.
Typically, these uncertainties would weigh on the Kiwi. But, for now, the currency is riding them out.
The risk is that a major risk-off event could shake the market into action, and NZD is sold heavily, allowing GBP/NZD to recoup recent losses.
But for now, GBP/NZD is looking decidedly soggy and we won't stand in the way of the 2.220 test.