FxWirePro : GBP/NZD downtrend loses steam but outlook still bearish

• GBP/NZD initially dipped but recovered some ground  on Tuesday  as investors awaited British business activity data this week.

• Monthly surveys of business activity this week are expected to show the UK topped the league table in February, well ahead of the euro zone and beating even the United States.

•Economists polled   expect an index of British business activity to have risen to 52.7 in early February .

• Choppy overnight action leads to a short lived dip but  buyers emerged near 2.0408 level .

• Technical signals show the pair could lose more ground as RSI is at 43, and 9, 11,21 DMA’s are trending south.

• Immediate resistance is located at 2.0537(Daily high), any close above will push the pair towards 2.0647(23.6%fib).

• Immediate support is seen at 2.0408 (23.6%fib), break below could take the pair towards 2.0369(Lower BB).

Recommendation: Good to sell around 2.0470  with stop loss of 2.0650  and target price of 2.0400