• GBP/NZD dipped on Monday, as demand for antipodean currencies increased after death rates in some of the countries worst hit by the coronavirus dipped.
• Underlying trend for the pair remains bearish. A break below 2.0595 (Trendline) might spur increased downward momentum.
• At GMT 18:25, the pair was trading 0.96% lower at 2. 0720, lowest since March 31st.
• Technically 5 day and 11-day momentum remains negative and RSI beginning to head down.
• On the upside, Immediate resistance is located at 2.0798 ( 5 EMA), any close above will push the pair towards 2.0916 (Daily high).
• On the downside, strong support is seen at 2.0595 (Trendline) and break below could take the pair towards 2.0422(31st March low).
Recommendation: Good to sell on rallies around 2.0800, with stop loss of 2.1000 and target price of 2.0550.
