• GBP/NZD dipped on Monday, as optimism about COVID-19 vaccine rollouts offered boost to commodity linked New Zealand dollar.
• The New Zealand dollar has gained steadily against the pound from 19th Feb at 1.9375 to current daily low at 1.9144 .
• GBP/NZD is likely to drop further as the focus remains on the global economic recovery from COVID-19, and progress against the pandemic.
• Technical signals are bearish as RSI is at 54, momentum studies, 5, 10 & 21 daily moving averages are trending lower.
• Immediate resistance is located at 1.9244(5DMA), any close above will push the pair towards 1.9314 (38.2%fib).
• Strong support is seen at 1.9159 (50%fib) and break below could take the pair towards 1.9122 (21DMA).
Recommendation: Good to sell around 1.9230 , with stop loss of 1.9350 and target price of 1.9100.
