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• GBP/NZD rose higher on Monday as sterling gained ground ahead of a confidence vote.
• Betting odds favour Johnson winning the vote, the result of which is expected soon after 1900 GMT.
•The pair currently is approaching resistance at 38.2%fib. A break above would unmask 1.7450 level in the short term.
• Technical signals are bullish as RSI is at 50, daily momentum studies 5, 9 and 11 DMAs are trending north.
• Immediate resistance is located at 1.9334 (38.2%fib ), any close above will push the pair towards 1.9426(June 1st high).
• Strong support is seen at 1.9245 (5DMA) and break below could take the pair towards 1.9163 (50% fib).
Recommendation: Good to buy on dips around 1.9300, with stop loss of 1.9200 and target price of 1.9380.
