GBP/NZD

GBP/NZD is the currency pair encompassing the British pound of the United Kingdom (symbol £, code GBP), and the New Zealand dollar (symbol $, code NZD).

The pair’s rate indicates how many New Zealand dollars are needed in order to purchase one Pound Sterling.

For example, when the GBP/NZD is trading at 2.3500, it means 1 British pound is equivalent to 2.35 New Zealand dollars.

The British pound (GBP) is the world’s fourth most traded currency, whilst the New Zealand dollar (NZD) is the world’s tenth most traded currency.

With relatively high spreads ranging from between 3 and 8 pips on most forex brokers, the pair is one of the most volatile pairs of majors.

Important economic releases include ANZ Business Confidence report for New Zealand, which is a survey across over 1500 businesses measuring potential optimism for the next twelve months.

For the UK, Retail Sales is one of the major news announcements, and is the most useful report indicating consumer spending.

Of note, continued Brexit talks in 2020 and the lingering uncertainty of a resolution with the European Union has also impacted the GBP/NZD, adding even more volatility to the pair.

How to Trade GBP/ NZD

The GBP/NZD is arguably among the most difficult pairs to trade successfully, with its unreliable price action and huge swings, often price ranging over 400 pips in a single day.

Get on the right side of this pair, and you can see why some traders see it as very lucrative.

However, it is fraught with dangers, and the new trader is urged not to trade such a pair, since it moves so quickly.

Indeed, it’s not uncommon to see this pair move over 100 pips in just fifteen minutes. Despite this, there are excellent opportunities for the traders skilled in technical analysis, since the GBP/NZD does actually adhere to key price action.