• GBP/NZD steadied on Friday as riskier currencies like sterling recovered after being hurt by a broader shakeout in FX markets.
•Sterling has been among the top performing G10 currencies this year following Britain’s quick vaccination rollout, which encouraged hopes for a quick economic recovery.
• GBP/NZD failed to break support at 1.9796 and bounced towards 1.9890. Resistance at 1.9899(23.6%fib) is now threatened.
• Technical signals are bullish as RSI at 58, moving averages are trending up.
• Immediate resistance is located at 1.9899 ( 23.6%fib), any close above will push the pair towards 1.9931 ( Higher BB).
• Strong support is seen at 1.9796 (38.2%fib) and break below could take the pair towards 1.9731 (14DMA).
Recommendation: Good buy around 1.9850, with stop loss of 1.9790 and target price of 1.9910.
