FxWirePro: GBP/NZD runs out of steam but maintains bullish outlook

• GBP/NZD eased on Monday as kiwi dollar firmed following stronger-than-expected retail sales data .

• Data on Monday showed retail sales in New Zealand rose a solid 0.5% in the June quarter amid signs of a long-awaited recovery in consumer spending. On an annual basis, New Zealand’s retail sales rose 2.3% in Q2, sharply up from 0.7% in Q1.

•Sales rose across most industries, led by strong gains in electronics, supermarkets, groceries, and pharmaceuticals, the data showed.

•The strong increase suggests that consumers are responding to lower interest rates, supporting robust household spending. 
• Technical signals are bullush as RSI is at 51, daily momentum studies  14, and 21DMAs are trending  up. 

• Immediate resistance is located at 2.3213(23.6%fib), any close above will push the pair towards 2.3224 (Aug 20th high).

• Strong support is seen at 2.2963(38.2%fib) and break below could take the pair towards 2.8003 (50%fib).

Recommendation: Good to buy around 2.2900 with stop loss of 2.2800  and target price of 2.3150