• GBP /NZD initially gained on Tuesday but gave up some ground after a barrage of data prompted worries about waning consumer demand in the economy.
• Data showed business activity in the UK services sector fell in August for the first time since January, European markets came under pressure post soft readings in both China and the eurozone, projecting weak consumer demand.
• A close above 23.6% fib, should trigger a new bullish phase with potential for 2.1500.
• Technicals highlight upside risks. The 5, 9 and 11 day moving averages are trending north, daily RSI is bullish at 58.
• Immediate resistance is located at 2.1476 (23.6% fib), any close above will push the pair towards 2.15550(Higher BB).
• Immediate support is seen at 2.1322 (14DMA) and break below could take the pair towards 2.1207(38.2%fib).
Recommendation: Good to buy on dips around 2.1330, with stop loss of 2.1200 and target price of 2.1440
