• GBP/ NZD strengthened on Monday but gains were limited as investors positioned ahead of Tuesday's UK CPI release and the BoE's rate announcement on June 20.
• UK CPI to be released on Tuesday will set the tone for the BoE announcement and presser on Thursday.
• GBP/ NZD approached to test resistance 2.0761 (38.2%fib) but retreated as the pair lost strength.
• Technical signals are bearish as RSI is at 46, daily momentum studies 5,9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.0761 (38.2%fib), any close above will push the pair towards 2.0865(50%fib).
• Support is seen at 2.0647(23.6%fib) and break below could take the pair towards 2.0605 (Lower BB).
Recommendation: Good to sell around 2.0730, with stop loss of 2.0920 and target price of 2.0630
