Market Overview
The British Pound (GBP) against the New Zealand Dollar (NZD) has shown significant volatility recently, with the pair experiencing a brief dip to new multi-time lows before rebounding sharply from oversold conditions. This analysis focuses on the technical aspects of the GBP/NZD currency pair as of February 9, 2026.
Key Support Levels
In the past few sessions, the GBP/NZD has been respecting a local horizontal support zone, identified as being just below the 2.26 mark. This support level has been tested multiple times on February 3rd, 5th, and 6th, confirming its significance in the current market context.
Recent Price Action
At the beginning of the week, the market opened with a pronounced bearish move, breaking below the established support. However, this breakdown was short-lived as the price quickly reversed, indicating a potential false breakout scenario. Such false breakdowns often lead to corrective bounces, particularly when selling pressure fails to sustain momentum.
Current Sentiment and Outlook
As long as the GBP/NZD remains above the identified support zone, the short-term sentiment appears slightly positive. However, it is crucial to consider the broader market context, as this movement is counter to the prevailing medium- and long-term bearish trend. Therefore, any potential upside should be viewed as corrective rather than indicative of a trend reversal, with a higher likelihood of renewed downside pressure.
Potential Scenarios
If the price closes below the orange support zone today, it would invalidate the false breakout scenario and provide a fresh sell signal. Such a move would reinforce the notion that sellers remain in control and that the broader downtrend is poised to continue.