The British pound is looking to extend its strong rally

The British pound is looking to extend its strong rally against a number of major currencies, including the New Zealand dollar. Bullish traders of the trading pair are looking to extend their gains after the phenomenal run of the sterling last week. The strength of the sterling comes from a combination of commendable economic activities, the recovering global stock market, and the hopes of a Brexit deal by October. A factor that should be greatly considered is the possibility of MP’s blocking a post-Brexit trade deal with the European Union. Aside from the EU, the United Kingdom is also pursuing trade deals with the United States and Japan. As for the New Zealand dollar, it’s on the defensive and its performance will heavily rely on external factors and it’s affected by the prevailing global market sentiment of investors. If a piece of unexpected positive news comes up, it could help the New Zealand dollar prevent the pound from getting big gains.