FxWirePro:GBP/NZD recovery capped by 5 DMA, favouring weakness

• GBP/NZD declined on Monday as the pair recovery was capped at 5 DMA (2.0571).  

• Bulls needed a close above resistance at 2.0619 (trendline) but was roundly rejected last week. 

• Underlying trend remains bearish. A break below 2.0466 (50% fib) support might spur fresh downward momentum.

• Technically 9 day and 11-day moving average remains negative and RSI beginning to head down.

• On the upside, strong resistance is located at 2.0619 (trendline), any close above will push the pair towards 2.0798 (78.6% fib).

• On the downside, strong support is seen at 2.0466 (50% fib) and break below could take the pair towards 2.0322 (38.2% fib).

Recommendation: Good to sell on rallies around 2.0500, with stop loss of 2.0650 and target price of 2.0200.