• GBP/NZD firmed on Friday as weakness in the New Zealand dollar outweighed soft UK retail sales data.
• UK sales were up 0.6% year on year in November, unchanged from the previous month and falling short of estimates for 0.9% expansion,
• On a monthly basis, sales fell 0.1%, compared with expectations for a 0.4% expansion, ONS figures showed, coming a day after the BoE’s rate cut.
• The BoE lowered borrowing costs on Thursday after a tight 5–4 vote, with Governor Andrew Bailey supporting the hawks and cautioning that the rate path is unclear..
• Immediate resistance is located at 2.3274(38.2%fib), any close above will push the pair towards 2.3351(Higher BB).
• Immediate support is seen at 2.3138(SMA 20) and break below could take the pair towards 2.3088(50%fib).
Recommendation: Good to buy around 2.3120 with stop loss of 2.3020 and target price of 2.3220
