Source: PaxForex Premium Analytics Portal, Fundamental Insight

The New Zealand Business PMI for March came in at 47.1. Forex traders can compare this to the New Zealand Business PMI for February, reported at 49.3.

New Zealand Electronic Retail Card Spending for March contracted 0.7% monthly and 3.0% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for February, which dropped by 2.0% monthly and rose by 2.5% annualized.

New Zealand Food Prices for March decreased by 0.5% monthly. Forex traders can compare this to New Zealand Food Prices for February, which contracted 0.6% monthly.

UK Construction Output Seasonally Adjusted for February decreased by 1.9% monthly and 2.0% annualized. Economists predicted a contraction of 0.4% and 1.0%. Forex traders can compare this to UK Construction Output Seasonally Adjusted for January, which increased by 1.1% monthly and 2.0% annualized.

The UK GDP for February increased by 0.1% monthly, by 0.2% for the three-month-over-three-month period ending in January, and contracted by 0.2% annualized. Economists predicted a rise of 0.1%, 0.1%, and a decrease of 0.4%. Forex traders can compare this to the UK GDP for January, which expanded by 0.3%, decreased by 0.1% for the three-month-over-three-month period ending in January, and 0.1% annualized.

UK Industrial Production for February rose by 1.1% monthly and 1.4% annualized. Economists predicted a fat reading of 0.0% and an increase of 0.6%. Forex traders can compare this to UK Industrial Production for January, which decreased by 0.3% monthly and expanded by 0.3% annualized. UK Manufacturing Production for February accelerated by 1.2% monthly and 2.7% annualized. Economists predicted a rise of 0.1% and 2.1%. Forex traders can compare this to UK Manufacturing Production for January, which dropped by 0.2% monthly and rose by 1.5% annualized.

The UK Visible Trade Balance for February came in at -£14.210B, and the UK Trade Balance Non-EU at -£2.900B. Forex traders can compare this to the UK Visible Trade Balance for January, reported at -£14.100B, and the UK Trade Balance Non-EU at -£3.340B.

The forecast for the GBP/NZD turned cautiously bullish, with price action at its horizontal support area. Short-term volatility could rise with the Tenkan-sen descending and the Kijun-sen ascending, but the upward-moving Ichimoku Kinko Hyo Cloud adds to long-term bullishness. Traders should also monitor the CCI in extreme oversold territory. A pending breakout could fuel the expected price action reversal. Can bulls regain control over the GBP/NZD and push this currency pair into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the GBP/NZD remain inside the or breakout above the 2.0890 to 2.0940 zone the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 2.0930
• Take Profit Zone: 2.1110 – 2.1170
• Stop Loss Level: 2.0885

Should price action for the GBP/NZD breakdown below 2.0890 the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 2.0855
• Take Profit Zone: 2.0660 – 2.0740
• Stop Loss Level: 2.0890

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