• GBP/NZD initially rally fizzed on Tuesday as demand for safe havens increased as risk appetite soured.
• Investors focus turned towards crucial economic releases scheduled for Wednesday, such as the ADP Employment Change report and the Bank of England's Financial Stability Report.
• GBP/NZD remains vulnerable, only a break and daily close above 50% fib will shift bias to the upside.
• Immediate resistance is located at 2.0601(50% fib), any close above will push the pair towards 2.0637 (14DMA).
• Strong support is seen at 2.0503(38.2% fib)and break below could take the pair towards 2.0459(Dec 5th low).
Recommendation: Good to sell on around 2.0540, with stop loss of 2.0650 and target price of 2.0480
