• GBP/NZD gained upward traction on Monday as dovish policy outlook and weak economic data from New Zealand weighed on kiwi dollar .
• Investors are positioning for a dovish Reserve Bank of New Zealand on Wednesday that could surprise with a super-sized 75 basis point rate cut. In contrast,
• Data showed retail sales in New Zealand fell 0.1% in volume terms last quarter, a smaller drop than many economists had expected thanks to stronger vehicle sales..
• Technicals are favouring bullish sentiment as RSI is at 55 and the pair is trading above 11 & 21-DMAs.
• Immediate resistance is located at 2.1544 (38.2%fib ), any close above will push the pair towards 2.1589 (2MSMA).
• Strong support is seen at 2.1443 (38.2%fib) and break below could take the pair towards 2.1355(50%fib).
Recommendation: Good to buy around 2.1500, with stop loss of 2.1400 and target price of 2.1590
