• GBP/NZD declined on Thursday as commodity-linked New Zealand dollar gained on hopes that major producers would agree to cut output.
• The pair fell to a low of 2.0510 in US trading and was last down 0.32% on the day at 2.0530 at GMT 17:01.
• The pair is approaching to test the 2.0501 support zone, a close below this region could turn the outlook more bearish for the pair.
• Technical signals show bearish momentum , the 5 DMA and 21 DMAs trend south, while RSI is heading south at 49.
• On the upside, Immediate resistance is located at 2.0631(38.2% fib), any close above will push the pair towards 2.0746 (9 DMA).
• On the downside, strong support is seen at 2.0501(30 DMA) and break below could take the pair towards 2.0346 (23.6% fib).
Recommendation: Good to sell on rallies around 2.0500, with stop loss of 2.0650 and target price of 2.0350.
