• GBP/NZD initially gained on Tuesday but early rally fizzled as investors awaited key UK economic data.
• Investors remain on hold ahead of Friday's economic data, including gross domestic product, the balance of trade and industrial production.
• Underlying trend for the pair remains bearish. A break below 38.2%fib support might spur increased downward momentum.
• Technical signals show bearish momentum , the9 DMA and 11 DMAs trend south, while RSI is heading south at 49.
• Immediate resistance is located at 2.0768 ( 11DMA), any close above will push the pair towards 2.0805 (50%fib).
•,Strong support is seen at 2.0667 (38.2%fib) and break below could take the pair towards 2.0556 (Nov 3rd low).
Recommendation: Good to sell on rallies around 2.0720, with stop loss of 2.0850 and target price of 2.0640.
