FxWirePro: GBP/NZD rejected at daily cloud, good to go short below 21-EMA at 1.88

GBP/NZD chart on Trading View used for analysis

• GBP/NZD is trading 0.45% lower on the day at 1.8827 at 1030 GMT.
   
• The pair has been rejected at daily cloud with Doji formation raising scope for further weakness.
   
• Technical studies on daily charts are showing signs of slight bearishness.
   
• The pair finds strong support at 21-EMA at 1.8799, break below to see  weakness.
   
• We notice a bearish divergence on Stochs which raises scope for downside in the pair.
   
• Break above cloud base required for upside continuation. Next major resistance above cloud base lies at 38.2% Fib at 1.91.
   
• Immediate support is seen at 21-EMA at 1.8798. Break below sees dip till 1.8732.

Support levels - 1.8798 (21-EMA), 1.8732 (23.6% Fib), 1.8625 (Nov 16 low)

Resistance levels - 1.8876 (5-DMA), 1.8959 (cloud base), 1.91 (38.2% Fib)

Recommendation: Good to go short on break below 21-EMA, SL: 1.8940, TP: 1.8730/ 1.87/ 1.8625

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