• GBP/NZD strengthened on Monday after the latest stimulus measures China failed to impress, weighing on kiwi dollar .
• China cut its one-year benchmark lending rate by a lower-than-expected 10 basis points.
• 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 73 daily momentum studies 5, 9 and 10 DMAs are trending north.
• Immediate resistance is located at 2.1569 (23.6% fib ), any close above will push the pair towards 2.1614 (Higher BB).
• Strong support is seen at 2.1460 (5DMA) and break below could take the pair towards 2.1361 (38.2% fib).
Recommendation: Good to buy on dips around 2.1510, with stop loss of 2.1300 and target price of 2.1600
