• GBP/NZD rose to hit five month high on Friday as the kiwi dollar remained weak, driven by expectations of further significant interest rate cuts from the Reserve Bank of New Zealand.
• The RBNZ has already lowered its official cash rate by 125bps to 4.25% this year and is anticipated to make an additional 50bps cut at its policy meeting in February next year.
•Rally towards is 2.1900 possible if GBP/NZD bulls overcome resistance at 38.2%fib
• Immediate resistance is located at 2.1876(38.2%fib), any close above will push the pair towards 2.1961(23.6%fib).
• Immediate support is seen at 2.1805 (50%fib) and break below could take the pair towards 2.1738(61.8%fib).
Recommendation: Good to buy around 2.1830, with stop loss of 2.1500 and target price of 2.1900
