GBP/NZD bulls step to the plate on Brexit deal breakthrough hopes

• GBP/NZD finds a base on hourly double bottom support as Brexit noise does the rounds.
• NZD, however, remains a strong contender on the G10 FX space and risk sentiment is a driver on vaccine hopes. 

GBP/NZD is currently trading at 1.9135 within a 1.9095 and 1.9160 range, finding support on the latest Brexit noise and basing at a double bottom hourly lows.

In recent trade, the news that a Brexit deal could be on the horizon has lifted spiritist among the GBP bulls. 

The Sun reported that David Frost told Boris Johnson to expect a Brussels trade deal “early next week”, which sent GBP higher by some 0.3% vs the dollar in early Asia. 

''Britain’s chief negotiator has pinpointed “a possible landing zone” as soon as next Tuesday,'; the paper reported. 

More on this here.

Meanwhile, the bird has been on the front foot as risk appetite rallied in further positive progress on the COVID vaccine front.

Markets have been encouraged with fresh news from Moderna’s phase three trials of its COVID-19 vaccine.

Results of the trial so far have shown their candidate vaccine to be 94% effective in preventing infection, including severe cases, and that it is easier to store and distribute than Pfizer’s version.

However, analysts at ANZ bank explained that the vaccine deployment won’t all be plain sailing, and ''things will still feel pretty tough as we go into 2021 given the lags in achieving inoculation and immunity, the still raging global pandemic, and the more pressing near-term issue of how NZ copes with a summer without tourists.''

The analysts also note that a reversal in the fiscal impulse will also be needed to overcome before a vaccine becomes widely available.

''But for now it’s sentiment driving markets and in that environment the risk is NZD goes higher.''

The other way around, NZD/GBP, analysts at ANZ bank examined that the cross 'looked extremely promising into the end of last week, turned lower, and has now regained composure again. A break of 0.5260,' '(or, GBP/NZD 1.9011), ''brings 0.5380/0.5400.'' (or, GBP/NZD1.8587/1.8518)'', ''(the top of the multi-year downtrend) into view.''