FxWirePro: GBP/NZD drops below 50% fib, favouring weakness

• GBP/NZD declined on Friday, as the pair got caught in a downdraft of selling.  

• Bulls needed a close above key fib at 2.1298 (61.8% fib) but was roundly rejected.The pair dropped quickly and broke support at 2.0813.

• Underlying trend remains bearish. A break below 2.0568 (38.2% fib) support might spur fresh downward momentum.

• Technically 9 day and 11-day moving average remains negative and RSI beginning to head down.

• On the upside, Immediate resistance is located at 2.0792 ( 50% fib), any close above will push the pair towards 2.1298 (61.8% fib).

• On the downside, strong support is seen at 2.0607 (21 DMA) and break below could take the pair towards 2.0568 (38.2% fib).

Recommendation: Good to sell on rallies around 2.0800, with stop loss of 2.1000 and target price of 2.0500.