• GBP/NZD initially dipped on Tuesday but recovered some ground as caution prevailed after the BoE said it was on alert following recent turmoil in the banking sector.
• BoE officials said that central bank was on alert amid global turmoil in the banking sector but added that UK was not experiencing stress linked to the demise of Silicon Valley Bank.
• In an up-and-down session, the pair hit low at 1.9732 in early trading then recovered towards 1.9768.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 62 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.9834 (38.2%fib), any close above will push the pair towards 1.8970 (Higher BB).
• Strong support is seen at 1.9727 (5DMA) and break below could take the pair towards 1.9646 (38.2%fib )
Recommendation: Good to buy around 1.9730 with stop loss of 1.9600 and target price of 1.9830
