• GBP/NZD declined on Tuesday as caution grew among investors awaiting the outcome of Brexit trade-deal talks.
• The pound has continued to underperform as sell-off was triggered by final chapter of the Brexit saga.
• At GMT 17:55, the pair was trading 0.13% lower at 1.8963, lowest since Dec 2nd 2020.
• Technical signals are bearish as RSI is at 40, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.9035 ( 38.2% fib), any close above will push the pair towards 1.9096 (21DMA).
• Immediate support is seen at 1.8880 (Daily low) and break below could take the pair towards 1.8833 (23.6%fib).
Recommendation: Good to sell below 1.8970, with stop loss of 1.9150 and target price of 1.8850.
