• GBP/NZD strengthened on Friday after British economy grew more than expected in the first quarter of the year.
• Gross domestic product expanded by 0.6% in the three months to March, the Office for National Statistics said, the strongest growth since the fourth quarter of 2021 when it rose by 1.5%.
• GBP/NZD recovers some ground but lift stops after finding resistance at 2.0806(5SMA).
• GBP/NZD remains vulnerable, only a break and daily close above 2.0903 (38.2%fib) will shift bias to the upside.
• Technical are bearish, daily RSI is negative at 42, daily momentum studies 14 and 21 DMAs are trending down.
• Immediate resistance is located at 2.0806(5SMA), any close above will push the pair towards 2.0903 (38.2%fib).
• Strong support is seen at 2.0742 (23.6%fib) and break below could take the pair towards 2.0670 (Mar 7th low).
Recommendation: Good to sell around 2.0810, with stop loss of 2.0950target price of 2.0720
