• GBP/NZD strengthened on Monday as sterling gained some ground as investors awaited UK's unemployment and CPI data due this week.
• UK's consumer price index (CPI) is expected to rise to 0.4% in September from 0.3% in August, but fall to 6.5% from 6.7% on an annual basis, according to economists polled by Reuters.
• GBP/NZD is probing resistance at 2.0706(23.6% fib), Break above at 23.6% fib support risks run towards 2.2200 level .
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bullish at 52.
• Immediate resistance is located at 2.0706 (23.6% fib), any close above will push the pair towards 2.0427(38.2% fib).
• Strong support is seen at 2.0606 (38.2% fib) and break below could take the pair towards 2.0536 (50 fib).
Recommendation: Good to buy around 2.0680, with stop loss of 2.0580 and target price of 2.0750
