• GBP/NZD strengthened on Wednesday as improved risk appetite drove capital flows to British pound.
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bearish as RSI is at 65, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.9794(23.6%fib ), any close above will push the pair towards 1.9832 (Higher BB).
• Strong support is seen at 1.9702 (5DMA) and break below could take the pair towards 1.9637 (38.2%fib).
Recommendation: Good to buy on around 1.9730, with stop loss of 1.9630 and target price of 1.8800
