• GBP/ NZD extended its yesterday’s bounce on Wednesday as kiwi dollar weakened further after the RBNZ delayed raising interest rates as the country entered a snap COVID-19 lockdown.
• The pair attempted to breach resistance at 2.0000 (23.6% fib)and dipped towards 1.9966 level . A decisive break closure above 23.6% fib could generate further gains.
• Any downside correction is likely to be temporary as barrier at 1.9887 (50%fib)is set to restricting lower move.
• Immediate resistance is located at 2.0000 (23.6% fib), any close above will push the pair towards 2.0063 (Higher BB).
• Immediate support is seen at 1.9934 (38.2% fib) and break below could take the pair towards 1.9887 (50%fib).
Recommendation: Good to buy around 1.9950, with stop loss of 1.9850 and target price of 2.0050
