• GBP/NZD studied around 1.9540 on Thursday as global risk aversion and global equity losses forced investors to dump commodity related currencies.
• Global equity fell as markets were dogged by fears high inflation would persist and force central banks to keep tightening monetary policy.
• Pair traded in 1.9422/1.9580 range and was last trading at 1.9540 into the US afternoon.
• Technical signals show RSI is at 62 bullish , daily momentum studies 9, 10 and 11 DMAs are trending upwards.
• Immediate resistance is located at 1.9621 (38.2% fib), any close above will push the pair towards 1.9672 (Higher BB).
• Immediate support is seen at 1.7517 (5DMA) and break below could take the pair towards 1.9390(5 DMA).
Recommendation: Good to buy on dips around 1.9510 with stop loss of 1.9400 and target price of 1.9700.
