• GBP/NZD rose sharply on Friday as GBP benefited from weaker New Zealand dollar, ECB accommodation and upbeat US CPI data, brushing off lower than expected UK GDP figures.
• The is pair heading towards the 1.9866 (23.6% 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 26, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9833 (Daily high ), any close above will push the pair towards 1.9866 (23.6% fib).
• Strong support is seen at 1.9797 (38.2%fib) and break below could take the pair towards 1.9745(50%fib).
Recommendation: Good to buy around 1.9800, with stop loss of 1.8710 and target price of 1.9870
