FxWirePro: GBP/NZD hits 12-week high at 1.8078, bias higher, stay long

• GBP/NZD has hit 12-week highs at 1.8078 on Thursday's trade before paring some gains to close at 1.8011.
   
• Kiwi continues to underperform, ignores upbeat China PMI data, supporting the pair higher.
   
• China's August Caixin PMI unexpectedly rose to 51.6, strongest since Feb. The outcome was above forecasts at 50.9.
   
• Recent NZD jawboning by RBNZ's Wheeler along with downbeat NZ business confidence data and overseas trade index weighs on the bird.
   
• GBP/NZD has shown triangle breakout on daily charts and is currently testing major resistance at 1.8050.
   
• Technical studies for the pair are bullish. Breakout above will see further upside.
   
• Cloud offers strong support on the downside and the pair has broken above weekly 20-SMA at 0.7958.
   
• Next immediate resistance lies at 1.8050 (trendline), break above will see test of 23.6% Fib retrace of 2.5318 to 1.6705 fall at 1.8737.
   
• On the downside, 200-DMA at 1.7759 is major support. We see reversal only on break below.

Support levels - 1.7920 (5-DMA), 1.7759 (200-DMA), 1.7674 (cloud base)

Resistance levels - 1.8118 (cloud top), 1.8271 (June 1 high), 1.83423 (61.8% Fib retrace of 1.8959 to 1.7344 fall)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Triangle-Breakout-in-GBP-NZD-good-to-go-long-on-dips-876627) has almost hit TP1.

Recommendation: Bias higher, stay long for further upside.

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