• GBP/NZD strengthened on Friday as GBP benefited from weaker New Zealand dollar and expectations that Bank of England will raise interest rates.
• The BoE is expected to become the first major central bank to raise rates since the start of the pandemic in a bid to tackle inflation
• The is pair heading towards the 1.9417 (38.2% fib), as near term direction of the pair is likely to be driven by current price action.
• Technical are strongly bullish, daily RSI is positive at 51, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9225(50%fib), any close above will push the pair towards 1.9417 (38.2% fib).
• Strong support is seen at 1.9132(61.8%fib) and break below could take the pair towards 1.9066(11DMA).
Recommendation: Good to buy around 1.9190, with stop loss of 1.9050 and target price of 1.9350
