GBPNZD recently fell through support at its rising trend line visible on the 4-hour time frame and appears to have completed a pullback. The 61.8% Fib drew sellers in after the RBNZ decision, and the pair might revisit the swing low from here.

The 100 SMA is still above the 200 SMA, though, so the path of least resistance is to the upside. In other words, support levels are still likely to hold. Stochastic is also on the move up to show that buyers are in control, and the oscillator has room to climb before reflecting overbought conditions.

RSI is also heading higher, so price could follow suit before overbought conditions are met. This could pave the way for another pullback to the higher Fib levels before more sellers join in.

A break below the swing low near the 100 SMA dynamic inflection point could spur a test of the 200 SMA dynamic support near the 1.9100 major psychological level next.

The RBNZ kept monetary policy unchanged as expected while citing that they’re keen on keeping stimulus options open. They did express some optimism about the ongoing economic recovery, though.

Meanwhile, sterling could get some volatility from the upcoming BOE monetary policy report hearings. BOE head Bailey and a few other MPC members will be sharing their outlook on growth and inflation while members of Parliament would likely have some questions on what the central bank’s next moves might be.

Dovish remarks could push GBPNZD lower while optimistic comments could spur some gains. Note that the vaccination program in the UK appears to be faring well, which could keep the pound supported, but New Zealand has also done a fine job of keeping new cases in check.

Risk appetite also appears to be in favor of the higher-yielding Kiwi as well.