Swift Recovery for GBP/NZD, Eyeing 2.0600 Mark
Relentless rally in commodity-linked currencies had a major impact on cross-currency pair and with no exception; GBP/NZD yesterday touched its lowest level since May 2015.
Wednesday's weakness in crude oil assisted GBP/NZD to recover swiftly from lower levels, erasing all of its yesterday's loss. The pair has now moved back above 2.0500 round figure mark.
GBP/NZD set to test trend-channel resistance
On H4, the pair remains within a short-term descending trend-channel and could now be eyeing to test the trend-channel resistance near 2.0600 mark. Momentum above the trend-channel resistance, marking a break-out, would set the stage for extension of near-term recovery for the pair.
On the downside, 2.0500 handle seems to protect immediate downside. Failure to respect this immediate support would increase the pair's vulnerability to resume its weakening trend towards retesting the trend-channel support, currently near 2.0360-50 area.
(Market News Provided by FXstreet)
