• GBP/NZD initially gained on Friday but reversed course sharply as renewed fears of a global recession combined with weak UK economic data hit the British currency.
•Data showed that UK manufacturing lost more momentum in June than originally thought, as new orders picked up at the fastest pace in two years.
• At GMT 16:57, the pair was trading 0.10% lower at 1.9472 after hitting daily high at 1.9628
• Technical signals are bearish as RSI is at 49, daily momentum studies 5, 10 & 21 DMAs track south.
• Immediate resistance is located at 1.9489 ( 5DMA), any close above will push the pair towards 1.9584 (Higher BB).
• Strong support is seen at 1.9382 (38.2%fib) and break below could take the pair towards 1.9268 (Lower BB).
Recommendation: Good to sell around 1.9480, with stop loss of 1.9580 and target price of 1.9390.
