• GBP/NZD rose higher on Wednesday as improved risk appetite drove pound higher across the board.
• Later this week, traders are awaiting UK GDP data, which might clarify BoE monetary policy.
• GBP/NZD has traded a 118 pip range thus far Wednesday, A rally towards 2.0550 is possible if bulls overcome resistance at 38.2% fib.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 55, daily momentum studies 5, and 9 DMAs are trending up.
• Immediate resistance is located at 2.0462 (38.2%fib), any close above will push the pair towards 2.0544 (23.6%fib).
• Strong support is seen at 2.0350(50%fib) and break below could take the pair towards 2.0269 (61.8%fib)
Recommendation: Good to buy around 2.0450 with stop loss of 2.0350 and target price of 2.0530
