• GBP/NZD dipped on Monday as the pair attracted sellers after China pledged an appropriately loose monetary policy next year.
• China will step up unconventional counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption.
• The remarks came ahead of the annual Central Economic Work Conference in the coming days to set key targets and policy intentions for next year.
•Technical signals are strongly bullish as RSI is at 58, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 2.1864 (23.6%fib), any close above will push the pair towards 2.1920(Daily high).
• Immediate support is seen at 2.1709(38.2%fib) and break below could take the pair towards 2.1574(50%fib).
Recommendation: Good to buy around 2.1670, with stop loss of 2.1600 and target price of 2.1850
