• GBP/NZD strengthened on Monday as improved risk appetite boosted sterling .
• Investors attention will be predominantly on the US inflation data this week, as they navigate expectations regarding potential interest rate cuts by the Federal Reserve.
• The pair currently is approaching resistance at 38.2%fib. A break above will unmask 2.0500 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 53,while moving averages and MACD are trending higher.
• Immediate resistance is located at 2.0442(38.2%fib), any close above will push the pair towards 2.0525(23.6%fib).
• Immediate support is seen at 2.0364 (50%fib) and break below could take the pair towards 2.0295 (61.8%fib).
Recommendation: Good to buy around 2.0400, with stop loss of 2.0300 and target price of 2.0480
