• GBP/NZD strengthened on Friday as GBP benefited from strongly weaker New Zealand dollar.
• The New Zealand economy suffered an unexpected contraction during the last quarter of the previous year, confirming a recession. Consequently, the currency experienced sharp fall
• At GMT 20:14, the pair was trading up 0.34 percent at 2.0795 after reaching daily high at 2.0818.
• A rally towards is 2.1100 possible if GBP/NZD bulls overcome resistance at 23.6%fib.
• Technical are bullish, daily RSI is bullish at 65, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 2.1056 (23.6%fib ), any close above will push the pair towards 2.1130 (Higher BB).
• Strong support is seen at 2.0907(38.2%fib) and break below could take the pair towards 2.0802(50%fib)
Recommendation: Good to buy around 2.0990, with stop loss of 2.0900 and target price of 2.1100
