• GBP/NZD extended rally on Monday as renewed Covid-19 restrictions in Europe dented kiwi dollar.
• Market sentiment deteriorated as commodity demand worries caused by possible widespread lockdowns in Europe weighed on the kiwi dollar.
• Technical signals highlight upside bullish trend as daily RSI rising and 9, 11,21 DMA’s are trending north.
• Immediate resistance is located at 1.9301 (38.2%fib), any close above will push the pair towards 1.9412 (23.6 % fib).
• Immediate support is seen at 1.9226 (50%fib) and break below could take the pair towards 1.9141(61.8%fib).
Recommendation: Good to buy on dips around 1.9200, with stop loss of 1.9100 and target price of 1.9300.
