Introduction to NZD/GBP
About the NZD
About the GBP
It is the national currency of the UK and many other territories using the pound sterling. One pound is divided into 100 pence (p). The British Pound Sterling has been in use since 1158. This makes it the oldest used currency in the world.
Understanding the NZD/GBP Pair
The NZD/GBP value represents the equivalent of one NZD pound. It is quoted as 1 NZD per x GBP. For example, if the NZD/GBP value is 0.51 then the seller needs to pay 0.51 pounds for it to buy 1 NZD.
Technical Analysis For NZDGBP
The British Pound could be at risk to the New Zealand Dollar with GBP/NZD trying to crack under growing support. It will open the door with the assurance of a content reversal. It will then rely on help, which is a wide range from 1.9899 – 2.0140. The removal of this technical barrier could pave the way for further weakness. Instead, in the event of a push higher, that could set the resistance focus at 2.0603 on the way to 2.0935.
Factors to watch when investing in the GBP/NZD pair
GBP/NZD Trading Range
The trading range is the depiction of a currency pair’s pip movement over different time frames. Through it, one can calculate how many dollars in a given period they will win/lose. For example, if the average pip movement on the 1H time frame is 30 pips, then either you’ll be on a $198.6 profit or a $198.6 loss in an hour. A trader, knowing that, can plan their lot sizes accordingly.
If the pound is highest against the New Zealand dollar, that is the perfect time to buy New Zealand dollars.
This is likely to happen when economic data related to New Zealand is released. If New Zealand should release an impressive employment data pointing to reduced joblessness. The NZD will likely gain. This means the New Zealand employment situation and the Bank of England’s monetary policy determine the volatility for GBP/NZD.
Pip is an abbreviation that stands for percentage in point. It is the smallest rise/increment in forex trading. Prices are quoted down to the fourth decimal point on the forex market. For example, if a bar of soap is sold at $1.20 in the drug store, the same soap bar would be listed at 1. 2000 on the forex market. The change is called 1 pip in that fourth decimal point and is equal to 1/100th of 1%.
Profit is the target, and entering at the right level. Thus, a currency pair can be much better than another, in short, you can be “lucky” and you are dealing on a high movement shift and that occurs on both pairs. Have you decided to exchange the EUR/GBP and the GBP/USD then a BUY on the former and a SELL on the latter would have earned a significant profit? Because Forex is done with pairs, it is down to the power of each other.