• GBP/NZD initially gained on Monday but gave up ground due to risk-off sentiment prevailing in the market.
• Risk-off sentiment typically emerges when investors become more cautious about global economic conditions, geopolitical risks, or potential market disruptions
• Trading volumes are expected to be thin in a holiday-truncated week. UK markets will close early on Tuesday and remain shut on Wednesday for the New Year.
• Technical signals are bullish as RSI is trending higher, moving averages are trending up
• Immediate resistance is located at 2.2357(23.6% fib), any close above will push the pair towards 2.2494(Higher BB).
• Strong support is seen at 2.1172 (38.2% fib) and break below could take the pair towards 2.2019 (50% fib).
Recommendation: Good to buy on around 2.2250 with stop loss of 2.2100 and target price of 2.2350
