• GBP/NZD extended its yesterday’s bounce on Thursday as traders shrugged of sluggish UK GDP data.
• Britain's economy partially recovered in August after a sharp drop in July but the bigger picture remained only sluggish growth.
• Technical signals are bullish as RSI is rising sharply from lower range, daily momentum studies 5.9 and 11 DMA’s are trending up.
• Immediate resistance is located at 2.0592(38.2%fib ), any close above will push the pair towards 2.0686 (23.6%fib%fib ).
• Strong support is seen at 2.0515 (50%fib ) and break below could take the pair towards 2.0430 (61.8%fib ).
Recommendation: Good to buy around 2.0540, with stop loss of 2.0430 and target price of 2.0630
