FxWirePro: GBP/NZD recovery capped at 55-EMA, further gains only on break above

GBP/NZD chart on Trading View used for analysis

• GBP/NZD has recovered from lows of 1.8619 to close at 1.8863 on Tuesday's trade.
   
• The pair slumped lower after UK Parliament voted down PM May's Brexit deal, but recovered losses as the risk of no deal diminishes.
   
• Positive comments by UK’s Leadsom who said that the government will win confidence vote later provided a minor lift to the British Pound.
   
• GBP/NZD trades 0.57% higher on the day at 1.8972 at 0935 GMT, bias higher.
   
• Price action has broken above stiff resistance at 55-EMA at 1.8927. 
   
• Stochastics and RSI have also turned higher and we see scope for test of 38.2% Fib. 
   
• Retrace below 55-EMA negates bullish bias. 

Support levels - 1.89, 1.8833 (20-DMA), 1.8678 (23.6% Fib)

Resistance levels - 1.9020 (38.2% Fib), 1.9101 (110-EMA), 1.9292 (100-DMA)

Recommendation: Stay long on close above 55-EMA, SL: 1.8855, TP: 1.9020/ 1.91/ 1.9290

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