• GBP/ NZD strengthened on Tuesday as sterling was boosted by return of risk appetite.
• Scope is growing for an eventual break above 2.0725 level, an eventual break above 2.0725 will accelerate further upside.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 60 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 2.0725 (38.2% fib), any close above will push the pair towards 2.0774 (Higher BB).
• Immediate support is seen at 2.0543 (50% fib) and break below could take the pair towards 2.0427 (30DMA).
• Recommendation: Good to buy around 2.0660, with stop loss of 2.0550 and target price of 2.0740
