• GBP/NZD declined on Tuesday as higher oil prices and signs of a global economic recovery from the coronavirus pandemic supported New Zealand dollar.
•The pair reaches 1.9720 after extending south from 2.0000 (early Asia high). 1.9720 is the lowest level since Jan 24th 2020.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 5, 10 and 21 DMAs are trending down.
• Immediate resistance is located at 1.9873 (9 DMA),any close above will push the pair towards 1.9949 (38.2 % fib ).
• Immediate support is seen at 1.9705 (23.6% fib) and break below could take the pair towards 1.9629 (Lower BB )
Recommendation: Good to sell below 1.9760, with stop loss of 1.9900 and target price of 1.9600
