• GBP/NZD initially gained on Monday as but early rally fizzled as investors focus tuned to UK GDP data.
• Underlying trend for the pair remains bearish. A break below 23.6%fib support might spur increased downward momentum.
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 48..
• Immediate resistance is located at 2.0731 ( 5 EMA), any close above will push the pair towards 2.0779 (11DMA).
•,Strong support is seen at 2.0567 (23.6%fib) and break below could take the pair towards 2.0506 (Oct 17th low).
Recommendation: Good to sell on rallies around 2.0720, with stop loss of 2.0850 and target price of 2.0640.
