• GBP/NZD extended its gains on Friday as softer NZ inflation data continued to weigh on kiwi dollar.
• The data on Thursday showed New Zealand consumer prices jumped a huge 1.8% in the first quarter, from the previous quarter, but still missed forecasts of a 2.0% rise=.
• The rallied above 1.9400 level, lift stops after finding resistance at 1.9481 (Ichimoku Cloud Base). Sustained break at 1.9481 would open the door to 1.9600 level in the short term.
• Technical are bullish, daily RSI is at 58, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9392 (50%fib ), any close above will push the pair towards 1.9481 (Ichimoku Cloud Base).
• Strong support is seen at 1.9231 (61.8%fib) and break below could take the pair towards 1.9q67 (5DMA)
Recommendation: Good to buy around 1.9320, with stop loss of 1.9220 and target price of 1.9410
