• GBP/NZD dipped on Tuesday but recovered some lost ground as in line with expected Purchasing Managers' index (PMI) data supported sterling.
• U.K. economic activity slowed slightly in August as manufacturers were pummeled by weaker demand, but the services sector held up better than expected, survey data showed on Tuesday.
•The pair remains weak and might fall towards 1.8900 due to recession fears in the UK and despite PMI data coming roughly in line with expectations.
• Technicals are favouring bearish sentiment as RSI is at 44 and the pair is trading below 11 & 21-DMAs.
• Immediate resistance is located at 1.9073 (5DMA), any close above will push the pair towards 1.9188 (50%fib)
• Support is seen at 1.8192 (23.6% fib)and break below could take the pair towards 1.8831 (Lower BB).
Recommendation: Good to sell around 1.9080, with stop loss of 1.9150 and target price of 1.9000.
