GBP/NZD looks like it’s losing its bearish momentum after falling from its 2.2750 highs.

Are the bulls just taking a breather?

Here are levels to watch if you believe GBP/NZD will soon extend its longer-term trend:

GBP/NZD Daily Forex Chart by TradingView

China’s latest consumer-focused stimulus plan and easing global growth concerns gave the New Zealand dollar an early boost against the British pound this week.

But momentum seems to be shifting against commodity-linked currencies as traders gear up for the FOMC decision and renewed tariff concerns.

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and New Zealand dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

GBP/NZD, which has been climbing inside an ascending channel since mid-2024, dropped sharply from its 2025 highs near 2.2750.

That selloff, however, appears to be losing steam. GBP/NZD is now printing green candlesticks around 2.2350, a key area that lines up with the daily Pivot Point, the 38.2% Fibonacci retracement of February’s rally, and the channel support on the daily chart.

Is GBP/NZD gearing up to extend its longer-term uptrend?

A sustained move above 2.2350 could pave the way for a retest of the March highs or even fresh 2025 highs.

But if this bounce turns out to be just a pause in the downtrend and the pair breaks below the 50% Fib level, bearish setups could come into play, with downside targets at 2.2200 or even the major psychological handle at 2.2000 near channel support.

Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!