The bullish tone in the pair gathered pace as dismal August non-farm payrolls and wage growth numbers forced markets to reconsider the possibility of the September Fed rate hike.
The spot currently trades around 1.3345. British Pound witnessed a bullish break yesterday after the UK manufacturing PMI printed way above estimates.
However, the bird needs to close above 1.3315 (23.6% of 1.5019-1.2789). Such a close would open doors for a further rally towards 1.3533 (June 29 high). On the other hand, a day end close below 1.3315 would keep the doors open for bears to make their presence felt next week.
GBP/NZD – Ready for rally
Look at the GBP/NZD daily chart. It shows breach of falling trendline and a bullish price RSI divergence. However, the cross has turned sideways.
In our opinion, a day end close in the GBP/USD pair above 1.3315 would be a green signal for GBP/NZD cross to jump to 1.85 levels.
The spot currently trades around 1.3345. British Pound witnessed a bullish break yesterday after the UK manufacturing PMI printed way above estimates.
However, the bird needs to close above 1.3315 (23.6% of 1.5019-1.2789). Such a close would open doors for a further rally towards 1.3533 (June 29 high). On the other hand, a day end close below 1.3315 would keep the doors open for bears to make their presence felt next week.
GBP/NZD – Ready for rally
Look at the GBP/NZD daily chart. It shows breach of falling trendline and a bullish price RSI divergence. However, the cross has turned sideways.
In our opinion, a day end close in the GBP/USD pair above 1.3315 would be a green signal for GBP/NZD cross to jump to 1.85 levels.
