• GBP/NZD strengthened on Tuesday as commodity linked kiwi dollar was hurt by fears of slowing global economic growth.
• Pair lifts above 1.9550 but gains were limited as investors awaited US inflation data due on Wednesday, that may have big market impact.
• Technical signals indicate bullish movementum, as RSI is at 61, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.9629(Higher BB), any close above will push the pair towards 1.9716 (23.6%fib).
• Strong support is seen at 1.9454 (38.2%fib) and break below could take the pair towards 1.9366 (11DMA).
Recommendation: Good to buy around 1.9550, with stop loss of 1.9440 and target price of 1.9710
