• GBP/NZD initially dipped but recovered some ground on Wednesday as investors focus turned to UK service and Manufacturing PMI data.
• The Manufacturing PMI is anticipated come at 47.5, showing an improvement from the previous reading of 47.0.
•By 19:54 GMT, the pound was down 0.02% against the kiwi dollar to 2.0459. It dropped as low as 2.0374
• Technical signals show the pair could lose more ground as RSI is at 42, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 2.0488(Daily high), any close above will push the pair towards 2.0566(38.2%fib).
• Immediate support is seen at 2.0374 (23.6%fib), break below could take the pair towards 2.0369(Dec 18th low).
Recommendation: Good to sell around 2.0460 with stop loss of 2.0650 and target price of 2.0400
