• GBP/NZD dipped on Friday as New Zealand dollar bounced on rate hike expectation .
• New Zealand dollar has benefited from a noticeable change in market expectations for interest rates, driven partly by unexpectedly strong local employment data.
• The is pair heading towards the 38.2%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bearish as RSI is heading down at 45 , daily momentum studies 5, 9 and 11 DMAs are trending southwards.
• Immediate resistance is located at 2.0605 (50%fib ), any close above will push the pair towards 2.0688 (61.8%fib).
• Strong support is seen at 2.0517(38.2%fib) and break below could take the pair towards 2.0412(23.6%fib).
Recommendation: Good to sell on around 2.0570, with stop loss of 2.0700 and target price of 2.0500
