• GBP/NZD strengthened on Monday as surprise bounce in UK retail sales on Friday added to the upbeat mood.
• Investors focus was on UK economic outlook with a closely-tracked business activity survey due out on Tuesday.
• Pair traded in 1.9505/1.9428 range and was last trading at 1.9489.
• Technical signals are bullish as RSI is at 54, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9526( 9DMA), any close above will push the pair towards 1.9657(23.6%fib)
• Strong support is seen at 1.9428 (38.2%fib ) and break below could take the pair towards 1.9373 (30DMA).
Recommendation: Good to buy around 1.9470, with stop loss of 1.9350 and target price of 1.9560.
