On its daily time frame, it can be seen that GBPNZD is in an ascending channel and is gearing up to test support around the 1.9000 major psychological mark. A bounce could take price back up to the top of the channel around the 2.0700 mark or the middle closer to 2.0000.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, this indicates that the uptrend is more likely to resume than to reverse. The gap is pretty narrow, though, so there may still be a chance for a bearish crossover. In that case, selling pressure could kick in and lead to a drop below the channel support.

RSI is hovering close to the oversold area to signal that sellers are exhausted and may need to take a break soon. Turning higher could lead to a return in bullish pressure and a bounce higher. Stochastic is already indicating oversold conditions and looks ready to pull up, so GBPNZD might follow suit.

Brexit talks appear to be making progress as a draft deal was agreed upon and PM May managed to secure the backing of her cabinet. Another round of meetings are scheduled in the days ahead, likely confirming whether or not an EU Summit for Brexit might be underway.

Further progress and weakening opposition could mean a turnaround for the pound as this would lift a lot of the uncertainty weighing on UK trade and businesses. The New Zealand dollar has also drawn some support from the general improvement in sentiment, but has been sensitive to dollar strength and trade tensions.

Still, Brexit appears to be the bigger theme in the coming days, so the Kiwi might mostly function as a counter currency rather than moving to the beat of its own drum.