FxWirePro: GBP/NZD set for further slump, shorts hold the advantage

• GBP/NZD  slipped lower on Monday as political uncertainty emanating out of Europe and stronger US dollar dragged sterling lower .
• Meanwhile, a gauge of British manufacturing activity pointed to the sharpest contraction in nine months, as orders from domestic and foreign customers fell and ongoing supply chain disruption pushed up costs.

• All eyes will be on Bank of England Governor Andrew Bailey's speech on Wednesday for more clues on the central bank's monetary policy path.

• GBP/NZD  fell to  below2.1500 level . A break under 38.2% fib would unmask 2.1400  level in the short term.

• Strong resistance is located at 2.1566(50% fib), any close above will push the pair towards 2.1610(Nov 26th high)

• Immediate support is   at 2.1476 (38.2% fib)   and break below could take the pair towards 2.1407 (Lower BB).

Recommendation: Good to sell around 2.1500, with stop loss of 2.1620 and target price of 2.1400