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FxWirePro:GBP/ NZD neutral in the near-term, scope for downward resumption

 • GBP/NZD declined  on Monday   as higher commodities prices and  improved risk appetite drove capital flows to kiwi dollar.

• GBP/NZD turned lower on the session, neared 2.0650 in late in US session. Bearish engulfing formation indicates  bear bias looks set to resume.  

• Technical signals are bearish as RSI is heading down   , daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 2.0748 (5DMA ), any close above will push the pair towards 2.0879 (23.6%fib).

• Strong support is seen at 2.0657(38.2%fib) and break below could take the pair towards 2.0471(50%fib).

Recommendation: Good to sell on  around 2.0680, with stop loss of 2.0750 and target price of 2.0600
 

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