• GBP/NZD retreated on Friday as investors focused remained on gilt market turbulence amid growing investor jitters over Britain's finances.
• Sterling has been in focus this week after UK government bonds, or gilts, slumped in a broader bond market sell-off, as rising debt levels across major economies came under scrutiny.
• On the data front, UK retail sales volumes rose 0.6% in July from June, the Office for National Statistics reported Friday, beating economists’ forecast for a 0.2% increase.
• Technical signals are bullish as RSI is at 55, daily momentum studies 9, 11 and 14 DMAs are trending north.
• Immediate resistance is located at 2.2988(38.2% fib), any close above will push the pair towards 2.3171 (Higher BB).
• Strong support is seen at 2.2905 (SMA 20) and break below could take the pair towards 2.2805 (50% fib).
Recommendation: Good to buy on dips around 2.2900, with stop loss of 2.0800 and target price of 2.3050
