- Geopolitical tensions continue to hold the centre stage in Europe which along with Brexit negotiations are likely to keep upside in GBP limited.
- Technically we see a bearish RSI divergence from price action.
- While price action is making higher highs, RSI has failed to converge with flatter to lower highs.
- On a longer term EM and higher yielding currencies like the NZD to get more attractive as U.S. economy continues recovery.
- GBP/NZD is extending choppy trade above 200-DMA. Decisive break below could see resumption of downside.
Support levels - 1.7761 (20-DMA), 1.7681 (200-DMA), 1.7650 (Mar 29 low)
Resistance levels - 1.7868 (5-DMA), 1.79, 1.7945 (trendline), 1.80 (Dec 5, 2017 high)
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Neutral Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Watchout for break below 200-DMA to see downtrend.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -32.5202 (Neutral), while Hourly NZD Spot Index was at -2.67834 (Neutral) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
