• GBP/NZD declined on Monday as higher commodities prices and improved risk appetite drove capital flows to kiwi dollar.
• GBP/NZD turned lower on the session, neared 2.0650 in late in US session. Bearish engulfing formation indicates bear bias looks set to resume.
• Technical signals are bearish as RSI is heading down , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 2.0748 (5DMA ), any close above will push the pair towards 2.0879 (23.6%fib).
• Strong support is seen at 2.0657(38.2%fib) and break below could take the pair towards 2.0471(50%fib).
Recommendation: Good to sell on around 2.0680, with stop loss of 2.0750 and target price of 2.0600
