• GBP/NZD strengthened on Friday as investors dumped commodity related currencies like New Zealand dollar on fears of global recession and weak oil demand.
• GBP / NZD rally lifts the pair above 2.0000(Psychological level). A break and daily close above 2.0116 (23.6%fib)will accelerate further gains.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 61 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 2.0116 (23.6%fib), any close above will push the pair towards 2.0254(Higher BB).
• Strong support is seen at 1.9822 (38.2%fib) and break below could take the pair towards 1.9718(14DMA ).
Recommendation: Good to buy around 2.0020, with stop loss of 1.9900 and target price of 2.0120
