• GBP/NZD initially gained on Friday but gave up some after bleak UK retail sales data.
• Retail sales volumes shrank 3.2% between December and November as people did their Christmas shopping earlier than usual. The numbers were worse than economists' forecast for a 0.5% drop.
• GBP/NZD traded in 2.0700 to 2.0852 range on Friday, A close below 23.6%fib, would add to pair’s bullish structure, opening the way towards 2.0900 level
• From a technical viewpoint, RSI is strongly bullish at 70, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 2.0852 (23.6%fib), any close above will push the pair towards 2.0888 (Higher BB).
• Immediate support is seen at 2.0700 (38.2%fib) and break below could take the pair towards at 2.0635 (Nov 23rd low).
Recommendation: Good to buy around 2.0760, with stop loss of 2.0600 and target price of 2.0900
