• GBP/NZD recovered some ground on Tuesday but gains were limited as investors digested UK factory activity data.
• Britain's manufacturing sector suffered a setback in its attempts to return to growth as output and employment fell more sharply in December than prior month, according to the final reading of the S&P Global/CIPS manufacturing PMI .
• Bulls will need a clear 38.2% fib to take greater control, failure to break higher will spur fresh downward momentum.
• Technical signals are trending down as RSI is lower at 38, moving averages are trending down.
• Immediate resistance is located at 2.0235 (38.2% fib), any close above will push the pair towards 2.0333 ( 20th Dec high).
• Immediate support is seen at 2.0100(23.6%fib) and break below could take the pair towards 2.0047 (Lower BB).
Recommendation: Good to sell around 2.0180, with stop loss of 2.0280 and target price of 2.0030
