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.