• GBP/NZD recovered some ground on Wednesday as the pair benefited from a bout of profit taking .
• The pound was up 0.08% against the Kiwi dollar to 2.0503. It dropped as low as 2.0503.
• GBP/NZD remains vulnerable, bulls need a close above the 1.3809 double day high to remove reversal risk.
• Technicals are favouring bearish sentiment as RSI is at 24 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 2.0526(38.2%fib), any close above will push the pair towards 2.0629(50%fib).
• Immediate support is seen at 2.0395 (23.6%fib), break below could take the pair towards 2.0357 (Lower BB).
Recommendation: Good to sell below 2.0570 with stop loss of 2.0650 and target price of 2.0400
