• GBP/NZD steadied around 2.0657 on Wednesday as higher house prices in Britain supported bets that the Bank of England was not likely to cut rates any time soon..
• Data from mortgage lender Halifax revealed that British house prices experienced the strongest annual growth rate in a year, contributing to tentative indications of momentum in the housing market.
• A rally towards 2.0800 is possible if GBP/NZD bulls overcome resistance 23.6%fib.
• Technical signals are bullish as RSI is rising at 61, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 2.0724(38.2%fib), any close above will push the pair towards 2.0779 (Feb 6th high)
• Strong support is seen at 2.0623(50%fib) and break below could take the pair towards 2.0495 (61.8%fib).
Recommendation: Good buy around 2.0640, with stop loss of 2.0500 and target price of 2.750
