• GBP/NZD rose sharply on Thursday as broad kiwi dollar weakness and hawkish BoE expectations helped the pair gain most of the ground.
• Kiwi dollar weakened sharply after New Zealand PM Jacinda Ardern made a surprise announcement that she would step down and not seek re-election.
• The pair hit daily high at 1.9401, it was last up 0.02% at 1.9376.
• Technical signals are bearish as RSI is at 62, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.9401 (Daily high ), any close above will push the pair towards 1.9505 (23.6%fib).
• Strong support is seen at 1.9346 (38.2%fib) and break below could take the pair towards 1.9274 (No 22nd low).
Recommendation: Good to buy around 1.9360 with stop loss of 1.9260 and target price of 1.9410.
