FxWirePro: GBP/NZD breaks below major trendline support at 1.8550, on track to test 61.8% Fib, stay short

GBP/NZD chart on Trading View used for analysis

• GBP/NZD has broken below weekly cloud and major trendline support at 1.8550.
   
• Scope for further weakness, 61.8% Fib retracement at 1.8143 in sight.
   
• Brexit continues to weigh the Pound down as the UK's parliament vote looms around the corner.
   
• This weekend's G20 summit did little to ease bearish pressures on the British Pound. 
   
• Markets wary ahead of the upcoming parliamentary vote on May's Brexit proposal in the House of Commons on December 11th.
   
• Theresa May will need 320 members of the UK parliament (MPs) voting for her Brexit deal with only 224 loyal Conservatives being secured now.  
   
• Technical studies support downside. Scope for test of 61.8% Fib at 1.8143. 
   
• Immediate resistance lies at 5-DMA at 1.8612. Bearish invalidation only above 200-DMA.

Support levels - 1.84, 1.8143 (61.8% Fib)

Resistance levels - 1.8612 (5-DMA), 1.8925 (21-EMA)

Recommendation: Stay short on upticks, SL: 1.8620, TP: 1.83/ 1.8145

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.