• GBP/NZD rose on Wednesday as stronger than expected monthly UK GDP data bolstered GBP.
• Official data showed England's economy shrank by less than expected 1.5% in the first quarter. In March, the economy grew by 2.1% from February drove by the retail sector.
• The is pair heading towards the 23.6%fib, as the UK news turns more positive. Only a break and daily close above 1.9556 (38.2%fib ) will shift bias to the downside.
•Technical signals are strongly bullish as RSI is at 31, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9669 (23.6%fib ), any close above will push the pair towards 1.9700 (Psychological level).
• Immediate support is seen at 1.9556 (38.2%fib ) and break below could take the pair towards 1.9518 (300DMA).
Recommendation: Good to buy around 1.9600, with stop loss of 1.9500 and target price of 1.9700.
