• GBP/NZD dipped on Monday as the mood turned bearish for the pair ahead of interest rate hike decision by Reserve Bank of New Zealand (RBNZ).
• The Reserve Bank of New Zealand (RBNZ) is expected to rise its OCR by 50 bps consecutively for the fifth time.
• The pair dropped quickly to test 1.9655(38.2% fib) support and recovered towards 1.9801. Daily close below 38.2% fib support will increase further downtrend .
• Immediate resistance is located at 1.9964 (23.6% fib), any close above will push the pair towards 2.000(Psychological level)
• Support is seen at 1.9655(38.2% fib) and break below could take the pair towards 1.9438 (50% fib).
Recommendation: Good to sell around 1.9800, with stop loss of 2.000and target price of 1.9720.
