TD Research flags a a scope for GBP/NZD to extend lower towards 1.9415. TD also hold a short GBP/USD* position as its ToTW for this week targeting a move towards 1.2270.
"We see mounting downside risks to GBPNZD as we highlight above that sterling looks rather vulnerable against a wide swath of currencies.
If NZD is the worst-performing G10 currency since early August, GBP is the best over this same interval. The "double-top" YTD rejection of a "2" handle combined with a recently-overbought RSI adds technical merit to our fundamental views," TD notes.
"We see a further decline to test support around 1.9415," TD adds.
*Recorded in eFXplus Orders