• GBP/NZD strengthened on Monday as investors consolidated bets ahead of a Bank of England meeting next month.
• Money markets are fully pricing in one rate hike by next month and one full percentage point increase in interest rates by the end of 2022.
• At GMT 18:53, the pair was trading 0.65% higher at 2.0075, slightly lower from session high at 2.0129.
• Technical signals are bullish as RSI is at 69, daily momentum studies 5,9,10 DMA, are trending up.
• Immediate resistance is located at 2.0129 (23.6%fib ), any close above will push the pair towards 2.0200(Higher BB).
• Strong support is seen at 1.20031(5 DMA) and break below could take the pair towards 1.9962 (38.2%fib).
Recommendation: Good to buy on dips around 2.0075 with stop loss of 1.9950 and target price of 2.0200.
