• GBP/NZD dipped on Tuesday as concerns that Britain was preparing to override the Brexit divorce deal weighed on sterling.
• Market participants have been unnerved by the negative Brexit headlines at the start of this week ahead of another round of talks over a trade deal.
• At GMT 15:32, the pair was trading down 0.83 percent at 1.9180 after reaching daily low at 1.9144.
• Technicals are favouring bearish sentiment as RSI is at 43 and the pair is trading below 5,9 & 11-DMAs.
• Immediate resistance is located at 1.9678 (50% fib), any close above will push the pair towards 1.9709 (5 DMA)
• Support is seen at 1.9531 (38.2% fib ) and break below could take the pair towards 1.9362 (23.6% fib).
Recommendation: Good to sell around 1.9650, with stop loss of 1.9750 and target price of 1.9530.
