GBPNZD January 2026 fundamental analysisBritish Pound/New Zealand DollarFX:GBPNZDOneirotradeGBP/NZD Current Level: 2.33083 | 1-Month Change: +2.47% | Trend: Uptrend Fundamental Analysis: GBP/NZD demonstrates strong upward momentum driven by sterling's rate-cutting cycle supporting carry trades and NZD's limited support from the RBNZ. The BoE has cut rates to 3.75% with expectations for further cuts to 3.25%-3.50%, while the RBNZ holds at 2.25% with any near-term moves likely to be hikes (from mid-2026). The interest rate differential of 150 basis points (currently) will shrink further as the BoE cuts and RBNZ potentially hikes. The UK's inflation is falling faster than New Zealand's, supporting continued BoE easing. On the other hand, New Zealand's economy remains weak with excess capacity, limiting upside for NZD. The pound carries positive momentum from recently completed soft rate cuts, still benefiting carry traders. Risk sentiment supports higher-yielding GBP over lower-yielding NZD. Recent Price Action: Uptrend with +2.47% monthly gain reflects sustained GBP strength. Momentum is positive and the pair is establishing higher levels. Verdict: BUY – GBP/NZD benefits from carry trade momentum and NZD weakness despite narrowing rate differentials. However, this is a momentum trade rather than a fundamentals trade, as shrinking rate differentials will eventually weaken GBP.