• GBP/NZD recovered some ground on Monday,but gains were modest as market participants faced doubts about whether Britain would be able to exit the COVID lockdown in July as the Delta variant spreads .
• GBP/NZD remains capped by the 38.2%fib after failing today to push recovery envelope from 1.9659.
• GBP/NZD remains vulnerable, only a break and daily close above at 1.9800 (Psychological level) will shift bias to the upside.
• Techicals are mixed, daily RSI rises, daily momentum studies 5, 9 and 10 DMAs are flat.
• Immediate resistance is located at 1.9746 (38.2%fib ), any close above will push the pair towards 1.9852(23.6% fib).
• Strong support is seen at 1.9656(50% fib) and break below could take the pair towards 1.9589 (50DMA).
Recommendation: Good to sell on around 1.9720, with stop loss of 1.9800 and target price of 1.9610
