• GBP/NZD rose on Thursday as New Zealand dollar remained weak on dovish expectations from RBNZ.
• According to data released last week, New Zealand's GDP contracted by 1% quarter on quarter in the third quarter.
•This prompted markets to completely price in a massive 50bps rate decrease at the RBNZ's next meeting in February.
• Technical signals are bullish as RSI at 66, daily momentum studies 21, 30 and 50 DMA’s are trending up.
• Immediate resistance is located at 2.22982(23.6% fib), any close above will push the pair towards 2.2455(Higher BB)
• Strong support is seen at 2.2157 (Daily low)and break below could take the pair towards 2.0299(38.2% fib).
Recommendation: Good to buy around 2.2250 with stop loss of 2.2150 and target price of 2.2350
