GBP/NZD scales higher, reclaims 2.0800 mark

Adding on to its two day of sharp gains, the GBP/NZD pair continues to move higher, erasing all of its last week's loss and now seems all set to close at 3-week high.

GBP/NZD benefiting from kiwi weakness

The 3-day sharp up-move in the GBP/NZD pair could primarily be attributed to the ongoing corrective move witnessed in kiwi. The pair has managed to recovery sharply from early week low level of 2.0357, marking its lowest level since May 2015 and has now moved back above 2.0800 mark to currently trade near high point of the day.


Technical levels to watch

The ongoing momentum witnessed in the pair seems strong enough to lift it towards 2.0900 mark, nearing 50% Fibonacci retracement level of its down-leg from March high 2.1505 to this week low of 2.0357. A further break-through this immediate resistance opens room for further near-term recovery for the pair.

Meanwhile on the downside, 2.0800 round figure mark, closely followed by 2.0750 level, might now act as immediate support. Any weakness below these support levels is likely to get bought into.