• GBP/NZD reached its highest level in two weeks on Thursday as the pair attracted buyers after stronger-than-expected UK economic data.
• The data showed that the UK economy grew by 0.2% in March, surpassing the forecasted flat growth, and expanded by 0.7% in the first quarter, slightly ahead of the anticipated 0.6%.
• This better-than-expected economic performance boosted investor confidence in the British pound, leading to increased demand against the Australian dollar.
• The stronger GDP figures raised expectations that the Bank of England may adopt a more cautious approach to further interest rate cuts.
• Immediate resistance is located at 2.2739(Higher BB), any close above will push the pair towards 2.2782 (38.2% fib).
• Strong support is seen at 2.2545 (50% fib) and break below could take the pair towards 2.2464(May 16th low)
Recommendation: Good to buy around 2.2630 , with stop loss of 2.0540 and target price of 2.2750
