GBP/NZD:Bullish Momentum Intact with Potential for Fresh Impulse

The GBP/NZD is currently exhibiting a sustained bullish trend across all timeframes. Yesterday, the price initiated a retracement after experiencing a pullback at the 50% Fibonacci level from the previous swing. Based on this, our analysis suggests the possibility of a new upward impulse, with a target for profit-taking in the 2.0800 area.

However, during the European trading hours on Thursday, the 2-year UK gilt yield has declined by nearly 1% for the day. This decline in yield poses a challenge for the GBP/NZD to gather bullish momentum. Additionally, the UK's FTSE 100 Index remains in negative territory, thereby limiting the potential gains for the risk-sensitive Pound Sterling. Despite these factors, we are still on the lookout for a bullish setup in the GBP/NZD.