GBPNZD is down to the very bottom of its long-term ascending channel and appears to be bouncing off support. If this continues to keep losses in check, the pair could climb back to the channel top around 2.1000 or until the mid-channel area of interest at 2.0000.

The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, the gap between the two seems to be narrowing to signal a bearish crossover and the fact that price is trading below the indicators could signal bearish pressure.

Still, stochastic is already indicating oversold conditions and may be starting to pull up. This could encourage bulls to return and prop GBPNZD higher. On the other hand, a break below support at 1.8900 could mark the start of a longer-term slide. RSI is also turning higher after reaching the oversold zone and moving further north could lead GBPNZD to follow suit.

The EU and UK just agreed on a draft Brexit political declaration after months of negotiations and now preparations for a summit over the weekend to finalize the arrangement are underway. There are still some issues on the table but both parties seem inclined to table concerns from Spain and France and move forward with the key parts of the transition deal.

However, PM May has yet to secure enough support from parliament to get the deal through. There is also a lot of opposition on this front as most Conservatives are unhappy with the arrangements. Still, if she manages to get it done, a huge relief rally could ensue for pound pairs.

Meanwhile, the Kiwi is being bogged down by shaky risk appetite on account of resurfacing trade tensions. The G20 Summit is also set to take place and traders are keeping tabs on the interaction between Trump and Chinese President Xi.