GBP/NZD Surges Past 2.0900 Handle
The powerful rebound witnessed in the GBP/NZD pair adds further weight on Friday as the pair continues to scale new highs and has now move above 2.0900 round figure mark.
Bears caught off-guard
Earlier
this week, the pair dropped to its lowest level since May 2015. Since
then the pair has witnessed sharp rally and is currently trading
comfortably above 2.0900 mark at 2.0930, close to 50% Fibonacci
retracement level of 2.1505-2.0357 downfall.
With daily RSI
reading above 50, the pair could witness further recovery in the
near-term. Hourly RSI readings are pointing towards near-term overbought
conditions and hence, the pair might witness a minor pull-back or
consolidate at current levels. It should, however, be noted that
oscillators can remain overbought in a strong trend.
On the
downside, 2.0860-50 horizontal area might now protect immediate
downside. Any weakness below this immediate support might now be limited
at 38.2% Fibonacci retracement level support near 2.0800 round figure
mark.
