• GBP/ NZD strengthened on Wednesday as extended BoE gilt support tone boosted sterling across the board.
• The pair picked up upside momentum and is approaching 23.6%fib. A close above will open up 2.0000 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 60,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.9860( 23.6%fib), any close above will push the pair towards 1.9916 (Oct 12th high).
• Immediate support is seen at 1.9571(38.2%fib) and break below could take the pair towards 1.9450 (20DMA).
Recommendation: Good to buy around 1.9780, with stop loss of 1.9650 and target price of 1.9970
