GBPNZD is trending higher on its 1-hour chart and is closing in on the channel support around the 1.9250 minor psychological mark.

The Fibonacci retracement tool shows that this is near the 50% level while the 61.8% Fib lines up with the 100 SMA dynamic inflection point. If any of these hold as support, GBPNZD could recover to the swing high at 1.9346 or the channel top closer to the 1.9400 mark.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. Stochastic is also turning higher after a brief dip to the oversold region, suggesting that buyers are returning.

However, RSI is treading sideways to signal consolidation. This could keep GBPNZD hovering around the mid-channel area of interest for the time being.

There are no major reports due from both the UK and New Zealand in the next trading sessions, so traders might opt to wait for more catalysts. Note, however, that the vaccine rollout in the UK is boosting optimism that the economy could soon pull out of the pandemic and see a return to growth.

Meanwhile, risk appetite has been in play over the past weeks, but the Kiwi appears to be struggling to benefit from this. The trade row with China and the RBNZ hack seems to have kept gains in check and could continue to do so.

Still, any strong surge in risk-taking could spur a break below the channel support and a potential reversal for this pair. Note that traders are optimistic about the global vaccine rollout and government stimulus efforts, as these could bring a return to normal business conditions soon.