• GBP/NZD strengthened on Monday as risk-sensitive GBP was lifted by European equity gains.
• The pair hit daily high at 1.9594, it was trading 0.02% at GMT 17:40.
•The pair is approaching 23.6% retracement at 1.9602, a daily close below which will accelerate towards 1.9700 level.
• From a technical viewpoint, the moving averages are pointing upwards, while the RSI is strongly bearish at 68.
• Immediate resistance is located at 1.9602(23.6% fib), any close above will push the pair towards 1.9664( 13 Oct high).
• Strong support is seen at 1.9494 (38.2% fib ) and break below could take the pair towards 1.9402 (50% fib).
Recommendation: Good to buy around 1.9550, with stop loss of 1.9450 and target price of 1.9650.
