- GBP/NZD has shown a breakout above triangle top, scope for further upside.
- Kiwi under pressure on RBNZ Wheeler’s jawboning the NZD and downbeat NZ business confidence data.
- New Zealand business confidence fell to 18.3 versus 19.4 last, while the ANZ Activity Outlook stood at 38.2 vs. 40.3 prior.
- Technical studies are bullish. RSI strong at 66 with further room to run.
- Indicators on weekly charts also support upside. Cloud offers strong support on the downside and the pair has broken above weekly 20-SMA at 0.7958.
- The pair has broken above 200-DMA and finds next immediate resistance at daily cloud top at 1.8118.
- Break above will see test of 61.8% Fib retrace of 1.8959 to 1.7344 fall at 1.83423.
- On the downside, 5-DMA at 1.7872 is immediate support, break below will see drag till 200-DMA at 1.7757.
Support levels - 1.7872 (5-DMA), 1.7757 (200-DMA), 1.7678 (cloud base)
Resistance levels - 1.8118 (cloud top), 1.8271 (June 1 high), 1.83423 (61.8% Fib retrace of 1.8959 to 1.7344 fall)
Recommendation: Good to go long no dips around 1.7970/80, SL: 1.7860, TP: 1.8080/ 1.8115/ 1.82/ 1.8270
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 14.2812 (Neutral), while Hourly NZD Spot Index was at -142.023 (Bearish) at 0810 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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