• GBP/NZD initially gained on Friday but gave up ground as investors focused turned to next week’s BoE meeting.
•Money markets currently suggest a bold 50 basis point hike from the BoE on Aug. 4 is much more likely than a conservative 25 bps increase.
• GBP/NZD failed to break resistance at 1.9431 and retreated to towards 1.9338 . A daily close above 1.9431 (50%fib) will accelerate further gains.
• Technical signals are mixed as RSI has turned lower, moving averages are mixed.
• Immediate resistance is located at 1.9423 (50%fib), any close above will push the pair towards 1.9512( Higher BB).
• Immediate support is seen at 1.9317(5DMA) and break below could take the pair towards 1.9259(38.2%fib).
Recommendation: Good to buy around 1.9330, with stop loss of 1.9200 and target price of 1.9410.
