• GBP/NZD declined on Thursday as sterling ran out of steam after Bank of England Governor Andrew Bailey warned of an overreaction to rising inflation in the UK.
• GBP/NZD drops from 1.9805 (Daily high), slide halts after finding support at 1.9699 (50%fib).
• GBP/NZD remains bullish, a close above 1.9792( 38.2%fib), will likely trigger a new bullish phase with potential for 1.9900 level.
• Immediate resistance is located at 1.9792( 38.2%fib), any close above will push the pair towards 1.9901 (23.6%fib).
• Strong support is seen at 1.9699 (50%fib) and break below could take the pair towards 1.9616 (61.8%fib).
Recommendation: Good to buy around 1.9740, with stop loss of 1.9650 and target price of 1.9850
