FxWirePro: GBP/NZD Extends Consolidation Near New 11-Month Lows at 2.0417
- GBP/NZD has been trading a falling wedge formation and has hit fresh 11-month lows at 2.0417 on Monday's trade.
- Uncertainty around the Sterling in the run-up to the EU referendum likely to keep the pair depressed.
- While upbeat data which has pushed back RBNZ rate cuts bets supports NZD and hence downside in the pair.
- Downside in the pair is also confirmed on the charts. Major moving averages biased lower and weakness seen in RSI at 34 levels.
- The pair now sees resistance at 2.0520 (5-DMA), ahead of 2.0605 (10-DMA) and 2.0800 (Wedge top).
- On the other side, supports are seen at 2.0248 (May 7th 2015 low), 2.0071 (Apr 30th 2015 lows) and then 2.0050 (May 6th 2015 lows).