• GBP/ NZD strengthened on Monday as traders shrugged off the UK election result and focus on monetary policy in the UK and United States.
• GBP/ NZD is likely to maintain its slight bid any data surprises to upset the current BoE-Fed policy stasis.
• GBP/ NZD approached to test resistance 2.0929 (38.2%fib) but retreated as the pair lost strength.
• Technical signals are bullish as RSI is at 61, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 2.0929(38.2%fib), any close above will push the pair towards 2.1006(23.6%fib%fib).
• Support is seen at 2.0860(50%fib) and break below could take the pair towards 2.0791(61.8%fib).
Recommendation: Good to buy around 2.0900, with stop loss of 2.0720 and target price of 2.1000
