FxWirePro: GBP/NZD loses momentum but outlook is bullish
• GBP/NZD initially declined Wednesday as but upbeat UK inflation outlook reversed most of earlier weakness in the pair.
• British inflation hit 2.1% in May, beating projections and expected to accelerate further as the country reopens its economy after the coronavirus lockdowns.
• GBP/NZD remains bullish, only a close back below 50%fib at 1.9725 , could upset the bullish order.
• Immediate resistance is located at 1.9800 (38.2%fib ), any close above will push the pair towards 1.9845(Higher BB).
• Strong support is seen at 1.9746 (5DMA) and break below could take the pair towards 1.9724(50%fib).
Recommendation: Good to buy around 1.9760, with stop loss of 1.9650 and target price of 1.9810