• GBP/NZD initially dipped on Thursday but reversed course after the ECB reaffirmed its accommodative stance and unexpectedly strong U.S. inflation.
• The pair rebounded from 1.9600 to 1.9671 after the ECB stated that short-term inflation gains would be temporary.
• Technical signals highlight upside trend as daily RSI rising at 57, a daily bull hammer is forming and GBP/NZD is trading above the 5-DMA and 9DMA.
• Immediate resistance is located at 1.9694 (38.2%fib), any close above will push the pair towards 1.9771 (23.6%fib).
• Immediate support is seen at 1.9640 (50%fib ) and break below could take the pair towards 1.9579 (61.8%fib).
Recommendation: Good to buy around 1.9670, with stop loss of 1.9585 and target price of 1.9740.