• GBP/NZD recovered some ground on Wednesday after finding support at 2.0414 (38.2% fib).
• Underlying trend remains bearish. A break below 2.0414 (38.2% fib) might spur fresh downward momentum.
• At GMT 16:54, the pair was trading 0.12% lower at 2. 0505, lowest since 30th April.
• Technically 5 day and 14-day momentum remains negative and RSI beginning to head down.
• On the upside, Immediate resistance is located at 2.0532 ( 50% fib), any close above will push the pair towards 2.0584 (21DMA).
• On the downside, strong support is seen at 2.0490 (55 EMA) and break below could take the pair towards 2.0414 (38.2% fib).
Recommendation: Good to sell around 2.0500, with stop loss of 2.0650 and target price of 2.0350.
