• GBP/NZD dipped on Friday as strengthening economic prospects alongside a more hawkish approach by RBNZ boosted kiwi dollar across the board.
• RBNZ deputy governor Christian Hawkesby kept to the hawkish theme, saying stubborn inflation meant there was little room for error.
• GBP/NZD remains vulnerable, only a break and daily close above 5DMA will shift bias to the upside.
• Immediate resistance is located at 2.0520(38.2% fib), any close above will push the pair towards 2.0604 (5DMA).
• Strong support is seen at 2.0417 (23.6% fib) and break below could take the pair towards 2.0309 (Oct 10th low).
Recommendation: Good to sell on around 2.0460 with stop loss of 2.0550 and target price of 2.0350
