- GBP/NZD has broken out of a consolidation phase and resumed upside.
- The pair now eyes weekly 200-SMA at 1.9858, further upside only on break above.
- Price action has edged lower from 15-month highs at 1.9335 hit last week.
- Technical studies are biased higher, RSI and stochs support upside. MACD supports trend higher.
- Meanwhile, prospects of a BOE rate hike this week, though already priced in, underpinned the GBP.
Support levels - 1.9160 (5-DMA), 1.8832 (W 5-SMA), 1.8727 (20-DMA)
Resistance levels - 1.9335 (Oct 25 high), 1.9858 (W 200-SMA), 1.9995 (38.2% Fib retrace of 2.5318 to 1.6705 fall)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-NZD-consolidates-major-trendline-breakout-breach-above-236-Fib-eyes-100-DMA-at-19081-921146) has hit all targets.
Recommendation: Good to go long on dips around 1.9160, SL: 1.8960, TP: 1.9335/ 1.9858/ 2.0.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 36.4012 (Neutral), while Hourly NZD Spot Index was at 39.0743 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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