FxWirePro: GBP/NZD bullish potential tested, longs hang in the balance

• GBP/NZD extended rally towards 2.0860  level on Friday as  weaker kiwi dollar benefited bulls despite weak UK retail sales data.

•Retail sales volumes dropped by 0.9% on the month after a 0.4% rise in August, the Office for National Statistics (ONS) said, a much bigger decline than the 0.2% fall economists had forecast.

• October global PMIs, Australia Q2 CPI & US Oct PCE are key data risks next week.
 
• Pair traded in   2.0756 /2.0878  range ,a close above 38.2%fib, will trigger a new bullish phase with potential for 2.1000.
  
• Technical signals are bullish as RSI is at 61, daily momentum studies  5,9 and 10 DMAs are trending up. 

• Immediate resistance is located at 2.0878  ( 38.2%fib), any close above will push the pair towards 2.0942  (Sep 19th high).

• Strong support is seen at 2.0756 (50%fib ) and break below could take the pair towards 2.0723(5DMA).

Recommendation: Good to buy  around 2.0860  , with stop loss of 2.0750 and target price of 2.0950 .
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