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Sterling extends gains against kiwi

The sterling has been a significant outperformer in the fx space lately and has continued to run hot against all the majors.

NZD
Source: Bloomberg

Some better than expected data prints have also helped the currency and yesterday it was a positive surprise in retail sales underpinning the currency. While strength is coming through in the sterling, the NZD has been on the other end of the spectrum and is being sold off in all crosses. Recent signs of economic weakness have seen analysts call for a round of easing through the year. As a result GBP/NZD rallied to $2.300 and remember the pair was at $1.930 just two months ago. The pair is in a solid uptrend but now appears overbought and could see a near term pullback as the $2.300 region is a significant congestion zone from 2009 and could present some resistance. I feel pullbacks could be used by traders as a buying opportunity.

GBP/NZD
Click to enlarge

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