• GBP/NZD declined on Wednesday as Brexit risks and speculation about negative rates continued to weigh on GBP.
• The pound was buoyant against New Zealand dollar at the start of the day, but dipped as focus shifted back to the possibility of negative interest rates in Britain.
• At GMT 18:35, the pair was trading 0.24% lower at 1.9845, lowest since 21st January 2020.
• Technical signals are bearish as RSI is at 32, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.9896 ( 23.6% fib), any close above will push the pair towards 2.0020 (9 DMA).
• Immediate support is seen at 1.9741 (300 DMA) and break below could take the pair towards 1.9605 (Lower BB).
Recommendation: Good to sell below 1.9860, with stop loss of 2.0020 and target price of 1.9700.
