• GBP/NZD retreated on Friday as the pair rise faded after data showed a bigger-than-expected drop in retail sales.
• Data showed sales volumes last month were 1.2% lower than in June. Economists polled had forecast a 0.5% drop.
• GBP/NZD remains well above level 2.1407 (5DMA),Daily close above 23.6% fib will increase the scope for much bigger gains
• Technical signals are bullish as RSI is at 72 daily momentum studies 5, 9 and 10 DMAs are trending north.
• Immediate resistance is located at 2.1541 (23.6% fib ), any close above will push the pair towards 2.1600 (Higher BB).
• Strong support is seen at 2.1407 (5DMA) and break below could take the pair towards 2.1320 (38.2% fib).
Recommendation: Good to buy on dips around 2.1470, with stop loss of 2.1300 and target price of 2.1600
