• GBP/NZD extended its yesterday’s bounce as GBP was supported by hawkish shift in BoE expectations on hot data
• Next week, the Bank of England is expected to be in lockstep with the ECB, with the market eyeing the chances of a hike of 25 basis points.
• Technical signals are bullish as RSI is at 61, daily momentum studies 5,9 and 14DMA’s are trending up.
• Immediate resistance is located at 2.0656 ( 23.6%fib), any close above will push the pair towards 2.0743( June 1st high).
• Strong support is seen at 2.0525 (5 DMA) and break below could take the pair towards 2.0347 (38.2%fib).
Recommendation: Good to buy around 2.0580 , with stop loss of 2.0450 and target price of 2.0650.
