• GBP/NZD initially dipped on Monday but recovered ground as hawkish comments from Bank of England policymakers support the pound.
• Interest-rate setter Catherine Mann argued in a speech that the central bank should raise rates faster
• Event risks this week include UK CPI data and Powell testimony on Wednesday.
• Technical signals are bullish as RSI is at 51, daily momentum studies 5,9,21 DMA are trending up.
• Immediate resistance is located at 1.9381 (11DMA ), any close above will push the pair towards 1.9483 (23.6%fib).
• Strong support is seen at 1.9270 (38.2%fib) and break below could take the pair towards 1.9160 (Lower BB).
Recommendation: Good to buy on dips around 1.9320 with stop loss of 1.9200 and target price of 1.9400.
