FxWirePro: GBP/NZD rallies to 1-week high, good to buy on dips

• GBP/NZD rose  on Wednesday   as New Zealand dollar weakened broadly  despite RBNZ rate hike , as risk aversion, higher U.S. yields  and sluggish European equity markets weighed on kiwi dollar . 

•The Reserve Bank of New Zealand (RBNZ) raised rates by a quarter point to 0.50%, a decision well flagged in advance. First rate hike in 7 years was well flagged and discounted by markets.

• GBP/NZD rises  above the 5-DMA in US session, gains halts at the 1.9653 ,now eyes 38.2%fib at 1.9682.

• From a technical viewpoint, the moving averages are pointing north, while the RSI  is strongly bullish at 59.

• Immediate resistance is located at 1.9682 (38.2%fib), any close above will push the pair towards 1.9767(23.6%fib).

• Strong support is seen at 1.9619 (50%fib) and break below could take the pair towards 1.9576 (5DMA).

 Recommendation: Good to buy around 1.9640, with stop loss of 1.9550 and target price of 1.9720