• GBP/ NZD strengthened on Thursday expectations for more interest rate hikes by the Bank of England boosted sterling.
•Sterling also got a boost after Canada’s central bank surprised markets on Wednesday by hiking its overnight rate to a 22-year high of 4.75%.
• A rally towards 2.0700 is possible if GBP/ AUD 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 2.0665 ( 23.6%fib), any close above will push the pair towards 2.0752 (Higher BB).
• Immediate support is seen at 2.0535 (5DMA) and break below could take the pair towards 1.20388 (38.2%fib).
Recommendation: Good to buy around 2.0550, with stop loss of 2.0450 and target price of 2.0730
