• GBP/NZD declined on Tuesday as increased risk appetite and higher commodity prices kiwi dollar.
•UK Politics remained in focus for sterling traders as the contest to replace Boris Johnson as British prime minister continues to narrow.
• The pair dropped to test 1.9242(38.2% fib). A break under would unmask 1.9200 level .
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 43.
•Immediate resistance is located at 1.9292(5DMA ) , any close above will push the pair towards 1.9433 (Daily high).
• Immediate support is seen at 1.9242(38.2% fib ) and break below could take the pair towards 1.9150(June 3rd low ).
Recommendation: Good to around 1.9280, with stop loss of 1.9380 and target price of 1.9280.
