• GBP/NZD declined on Monday as higher commodity prices supported New Zealand dollar broadly.
• The commodity-sensitive New Zealand dollar rose across the board as iron ore soared more than 4%, fuelled by structural supply shortage and robust steel demand.
• At GMT 18:57, the pair was trading 0.30% lower at 1.9202. The cross pairs bearish bias is set to strengthen, likely to drop towards 1.9070
• Technical signals are bearish as RSI is at 49, daily momentum studies 5,9,11 DMA’s, are trending down.
• Immediate resistance is located at 1.9289 (50%fib ), any close above will push the pair towards 1.9348 (11DMA).
• Strong support is seen at 1.9159 (38.2%fib) and break below could take the pair towards 1.9064 (Lower BB).
Recommendation: Good to sell around 1.9230 with stop loss of 1.9350 and target price of 1.9100.
