• GBP/NZD edged higher on Monday but remained defensive as traders speculated about the potential signals that the Bank of England could convey in its upcoming policy meeting.
• The BoE is scheduled to announce its next policy decision on December 14. The market consensus overwhelmingly anticipates that there will be no change in the bank's policies.
• GBP/NZD remains vulnerable, only a break and daily close above 50% fib will shift bias to the upside.
• Technicals are favouring bearish sentiment as RSI is at 38 and the pair is trading below 11 & 21-DMAs.
• Immediate resistance is located at 2.0534 (38.2% fib), any close above will push the pair towards 2.0595 (5DMA).
• Strong support is seen at 2.0389 (23.6% fib) and break below could take the pair towards 2.0300 (11 Oct Low).
Recommendation: Good to sell on around 2.0500, with stop loss of 2.0600 and target price of 2.0400
