• GBP/ NZD rose on Monday as stronger industrial activity in China supported the cross pair. However, jitters over U.S.-Sino trade tensions kept gains in check.
• Unless there is a broader deterioration in overall investor risk sentiment, the GBP/ NZD appears well placed to extend its advance in the near-term.
• The pair was up 0.3% to $1.9868 at 20:27GMT after earlier falling to $1.9733.
• Technical signals show the pair could gain more ground as RSI is at 67 bullish, and 5, 9,11 DMA’s are trending north.
• Immediate resistance is located at 1.9862 ( 23.6% fib), any close above will push the pair towards 1.9975 (200 DMA).
• Immediate support is seen at 1.9737 (5 DMA) and break below could take the pair towards 1.9687 (38.2%fib).
• Recommendation: Good to buy around 1.9800, with stop loss of 1.9600 and target price of 2.0000
