• GBP/NZD gained on Monday as investors waited to see how aggressive New Zealand's central bank would be on rates this week.
• Markets are already priced for the current 1% cash rate to reach 3.25% by year end, so the risk is the central bank will not meet such hawkish expectations.
• The is pair heading towards the 50%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are turing bullish as RSI is urning up , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.9190 (50%fib ), any close above will push the pair towards 1.9330(61.8%fib).
• Strong support is seen at 1.9030(38.2%fib) and break below could take the pair towards 1.8871 (23.6%fib ).
Recommendation: Good to buy around 1.9050, with stop loss of 1.8950 and target price of 1.9120
