• GBP/NZD declined on Tuesday as Brexit risks and speculation about negative rates continued to weigh on GBP.
• The pound has continued to underperform as sell-off was triggered by dovish comments from BoE’s Andrew Haldane.
• At GMT 16:11, the pair was trading 0.42% lower at 2.0089, lowest since 25thth March.
• Technical signals are bearish as RSI is at 38, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 2.0131( 23.6% fib), any close above will push the pair towards 2.0316(38.2% fib).
• Immediate support is seen at 2.0062 (Lower BB) and break below could take the pair towards 2.0004 (100 DMA).
Recommendation: Good to sell below 2.0100, with stop loss of 2.0140 and target price of 2.0000.
