• GBP/NZD strengthened on Wednesday as broad New Zealand dollar weakness helped the pound shrug off weak UK inflation data.
• At GMT 15:05, the pair was trading 0.04% higher at 1.9660, slightly lower from session high at 1.9696
• Any downside correction is likely to be temporary as barrier at 1.9471 (38.2%fib) is set to restricting lower move.
• Technical signals are bullish as RSI is at 66, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.9705 (23.6%fib ), any close above will push the pair towards 1.9796(19 Oct 2020 high).
• Immediate support is seen at 1.9590 (Daily low) and break below could take the pair towards 1.9480 (38.2%fib).
Recommendation: Good to buy on dips around 1.9610 with stop loss of 1.9500 and target price of 1.9750.
