• GBP/NZD rose sharply as GBP benefited from weaker kiwi dollar after a single COVID case threw the New Zealand into lockdown again on Tuesday.
• The is pair heading towards the 1.9965 (Higher BB), 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 56, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9877 (23.6%fib ), any close above will push the pair towards 1.9965 (Higher BB).
• Strong support is seen at 1.9800 (38.2%fib) and break below could take the pair towards 1.9778(21DMA).
Recommendation: Good to buy around 1.9840, with stop loss of 1.8750 and target price of 1.9950
