FxWirePro: GBP/NZD rallies above 1.9200 but reversal is likely

• GBP/NZD recovered ground on Wednesday as slightly better than expected UK purchasing Managers Index survey data lifted sterling.

• The pullback from the low has passed through psychological level at 1.9200 and now eyes 23.6% fib at 1.9283.

• Bulls will need a clear 1.9378 ( 21 DMA) to take greater control, failure to break higher will spur fresh downward momentum.

• Technical signals trending down as RSI is at 37, moving averages14, 21, 30 DMA’s are trending down. 

• Immediate resistance is located at 1.9283 ( 23.6% fib), any close above will push the pair towards 1.9312( 14 DMA).

• Immediate support is seen at 1.9232 (5 DMA) and break below could take the pair towards 1.9146 (Daily low).

 Recommendation: Good to sell around 1.9260, with stop loss of 1.9380 and target price of 1.9150.