• GBP/NZD declined on Wednesday as kiwi dollar was supported by China's Services PMI, which recorded its 17th consecutive month of expansion.
• The Caixin/S&P Global services purchasing managers' index (PMI) rose to 54.0 from 52.5 in April, expanding for the 17th straight month and growing at the fastest pace since July 2023.
• Bears have tightened their grip on this market,A break, daily close under 23.6%fib could deepen losses.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 36 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 2.0700( Daily high), any close above will push the pair towards 2.0737 (38.2%fib).
• Strong support is seen at 2.0627(23.6%fib) and break below could take the pair towards 2.0588 (Lower BB).
Recommendation: Good to sell on rallies around 2.0650, with stop loss of 2.0730 and target price of 2.0560
