• GBP/NZD strengthened on Wednesday as GBP benefited from strongly weaker New Zealand dollar.
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bullish as RSI is heading down at 60 , daily momentum studies 5, 9 and 11 DMAs are trending north.
• Immediate resistance is located at 2.1406 (21DMA ), any close above will push the pair towards 2.1462 (23rd Aug high).
• Strong support is seen at 2.1306 (5DMA) and break below could take the pair towards 2.1203 (38.2%fib).
Recommendation: Good to buy around 2.1340, with stop loss of 2.1240 and target price of 2.1450
