• GBP/NZD dipped on Monday, as sterling attracted seller after Britain’s death toll from the novel coronavirus increased.
• Underlying trend for the pair remains bearish. A break below 2.0595 (Trendline) might spur increased downward momentum.
• At GMT 16:05, the pair was trading 0.96% lower at 2. 0525, lowest since April 14th.
• Technical signals are bearish as RSI is at 48, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.0571 ( 38.2% fib), any close above will push the pair towards 2.0634 (9 DMA).
• Strong support is seen at 2.0480 (Trendline) and break below could take the pair towards 2.0299 (23.6% fib).
Recommendation: Good to sell around 2.0450, with stop loss of 2.0800 and target price of 2.0000.
