GBP/NZD Surges Post UK GDP Data

GBP/NZD Surges Post UK GDP Data

27 April 2016, 13:39
Roberto Jacobs

GBP/NZD Surges Post UK GDP Data

The GBP/NZD pair surged past 2.1300 mark to trade near day's peak of 2.13300 after the first quarter UK GDP meet consensus estimates.

Although, 'Brexit' continues to be a key overhang for the British Pound, the GBP/NZD pair surged to its highest level since March 21 after the UK Office for National Statistics reported a tepid economic growth of 0.4%, down from 0.6% recorded in previous quarter but was still on expected lines.

Technical levels to watch

From current levels, the pair seems to build on to its gains towards 2.1400-2.1420 resistance area marking daily closing highs during the month of March. Beyond this immediate resistance, the pair seems all set to extend its upward trajectory beyond 2.1500 psychological mark towards a previous strong support, now turned major resistance near 2.1520-30 area.

On the downside, dip below 2.1300 mark seems to be short-lived and is likely to get bought into near 2.1225-2.1200 support area. Weakness below 2.1225-1200 support could get extended towards day's low support near 2.1115-1100 area, which if broken negates any further bullish bias.


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