CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

GBP/USD, NZD/USD: Bullish breaks bring tougher tests on the horizon

Article By: ,  Market Analyst
May 28, 2024 5:08 AM
  • GBP/USD and NZD/USD hit multi-month highs
  • GBP/USD eyes 1.2800, a level it’s struggled at over the past year
  • NZD/USD bulls reclaim control after midweek wobbles post RBNZ

GBP/USD, NZD/USD hit multi-month highs

GBP/USD and NZD/USD look bullish on the charts, breaking to fresh multi-month highs. With a light calendar in the UK and New Zealand, positioning tweaks ahead of Friday’s key US PCE inflation report looks set to drive the price action in the coming days.

GBP/USD bulls face major 1.2800 test

GBP/USD has managed to clear the high set last Wednesday following the UK’s hot inflation report for April, pushing to levels not seen since March. With RSI and MACD generating bullish signals, it looks like that cable may retest 1.2800 in the near-future, a level it has struggled to overcome over the past year.

The daily chart shows GBP/USD has pushed through 1.2800 on at least ten occasions since early August but delivered only one successful break, and even that didn't last long. Otherwise it’s been slim pickings for bulls with failure after failure being registered. As such, it looms as a key level this week.

Should it give way, there’s every likelihood we’ll see a push towards the high of 1.2894 set in March. If that eventuates, consider buying the break with a stop below 1.2800 for protection. Should 1.2800 defy the bull again, consider flipping the trade, selling GBP/USD with a stop above 1.2800 for protection. 1.2762 and 1.2690 are potential trade targets.

Given the prevailing trend, we prefer to buy dips or breaks, rather than fade rallies.

NZD/USD bounces as bears give up  

The setup is not dissimilar to NZD/USD which broke above the highs set last Wednesday following the RBNZ’s monetary policy decision, hitting levels not seen since the middle of March.

It’s hard not to like the price action over the past week, with bulls managing to repel wave after wave of selling ahead of support at .6083. Just check out the pair of bearish pin candles printed midway through the week, followed by a big fat bullish candle on Friday which saw NZD/USD bounce back into the uptrend it’s been in since the start of May. Nice!

Last Wednesday’s high may now act as support, allowing traders to buy the break with a stop below .6153 for protection. Possible trade targets include .6218 or .6277.

-- Written by David Scutt

Follow David on Twitter @scutty

 

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025