• GBP/NZD declined on Monday after UK factory activity slowed sharply in September.
• The final reading of a closely watched UK manufacturing survey showed that activity continued to slow sharply in September.
• Selling pressure will remain in the short-term, only a move and close above 2.0455 ( 9DMA) strong resistance will change momentum.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 21
• Immediate resistance is located at 2.0440 (38.2 % fib), any close above will push the pair towards 2.0455 ( 9DMA).
• Strong support is seen at 2.0270 (23.6% fib ) and break below could take the pair towards 2.0220(May 25th low).
Recommendation: Good to sell around 2.0320, with stop loss of 2.0450 and target price of 2.0200
