• GBP/NZD initially dipped on Tuesday but recovered some ground as investors awaited UK GDP data and Bank of England meeting on Thursday.
• Economists and traders believe the central bank will almost definitely maintain interest rates at 5.25%. They will, however, be on the lookout for signals about when borrowing prices could begin to reduce.
• The pair inability to hold gains above 2.0506, 38.2% fib, may increases the likelihood of a drop towards 2.0400 level.
• Technical are strongly bearish daily RSI is bearish at 42, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.0506 (38.2%fib ), any close above will push the pair towards 2.0535(14DMA).
• Strong support is seen at 2.0385(23.6%fib) and break below could take the pair towards 2.0300 (Oct 10th low).
Recommendation: Good to sell around 2.0500, with stop loss of 2.0600 and target price of 2.0400
