GBPNZD has been trading sideways, bouncing off support at the 1.9050 minor psychological level and resistance at the 1.9500 mark. Price is closing in on the range resistance and could be due for yet another bounce.

The moving averages are oscillating to reflect range-bound conditions, which suggests that the resistance is more likely to hold than to break. However, it’s worth noting that price is moving above both MAs as an indication of bullish pressure. A selloff could also find support at these dynamic inflection points around 1.9200.

Stochastic is already in the overbought territory to reflect exhaustion among buyers. Turning lower and moving south could confirm that sellers are taking over and are ready to drag GBPNZD back to the bottom of the range. ADX is below the 20.0 mark so there’s no major trend starting yet.

Sterling has been under pressure on account of Brexit developments as the UK moves closer to the exit date on April 12 without any clear plan. Parliament has seized control of the proceedings but seems unable to reach an agreement either.

Meanwhile, the Kiwi is also on weak footing due to the dovish RBNZ tone in last week’s decision. Many had already expected the central bank to maintain its cautious stance but were still surprised to hear that they’re opening the door for a cut later this year. Trade tensions have weighed on business outlook and commodity demand, leading some to predict that a rate cut could be in the cards as early as May.

Data from the UK has been mostly upbeat, though, and this is perhaps what’s keeping the pound afloat so far. Apart from that, the emergency EU summit scheduled on April 10 is also giving traders hope that officials in Brussels could give a bit more leeway instead of increasing the odds of a disorderly or disruptive Brexit.