• GBP/ NZD strengthened on Friday as New Zealand dollar continued its weakening trend against pound exacerbated by recent drop in New Zealand's inflation data.
• New Zealand's inflation might prompt the RBNZ to keep its current policies intact, potentially signaling the end of its tightening cycle.
• A rally towards 2.0900 is possible if GBP/ NZD bulls overcome resistance at 23.6%fib.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 64,while moving averages and MACD are trending higher.
• Immediate resistance is located at 2.0810 ( 23.6%fib), any close above will push the pair towards 2.0896 (Higher BB).
• Immediate support is seen at 2.0711(5DMA) and break below could take the pair towards 1.20605 (38.2%fib).
Recommendation: Good to buy around 2.0800 with stop loss of 2.0710 and target price of 2.0910
