• GBP/NZD rose towards 2.1700 level on Friday as the pair attracted bids ahead of new Labour government's first budget on Oct. 30.
• British finance minister Rachel Reeves will seek to shift the world's sixth-biggest economy, and Prime Minister Keir Starmer's government, onto a new course next week with big increases in public spending and tax.
• A daily close above (23.6% fib will further improve the technical outlook, and open the possibility of a rally towards 2.1850 level.
•Technical signals are strongly bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.1685(23.6%fib), any close above will push the pair towards 2.1777(Higher BB).
• Immediate support is seen at 2.1561 (38.2%fib) and break below could take the pair towards 2.1454(50%fib).
Recommendation: Good to buy around 2.1670, with stop loss of 2.1600 and target price of 2.1850
