• GBP/NZD initially dipped but recovered some ground as investors digested RBNZ rate decision.
• The Reserve Bank of New Zealand held interest rates steady but warned that further policy tightening might be needed
• GBP/NZD remains well below 38.2%fib ,Daily close below 38.2%fib increase the scope for much bigger drop
• Technical signals are bearish as RSI is heading down at 44 , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 2.0680 (50%fib ), any close above will push the pair towards 2.0709(11DMA).
• Strong support is seen at 2.0598(38.2%fib) and break below could take the pair towards 2.0492(23.6%fib).
Recommendation: Good to sell on around 2.0650, with stop loss of 2.0750 and target price of 2.0500
