• GBP/NZD extended its yesterday’s bounce as increased expectation that Bank of England will hike rates on Feb 3rd boosted pound against kiwi dollar .
• GBP/NZD bulls have gained momentum above 2.0400 level.Close a above 23.6% fib resistance is likely trigger new bullish phase with potential for 2.0500 level.
• Technical signals are bullish as RSI is at 80, daily momentum studies 5,11,and 21 DMA are trending up.
• Immediate resistance is located at 2.0463 (23.6% fib), any close above will push the pair towards 2.0546 ( Feb 3rd 2020 High).
• Strong support is seen at 2.0300 (38.2%fib) and break below could take the pair towards 2.0206 (9DMA).
Recommendation: Good to buy around 2.0400, with stop loss of 2.0200 and target price of 2.0550.
