FxWirePro: Cloud caps upside in GBP/NZD, 'Bullish Divergence' keeps scope for gains

GBP/NZD chart on Trading View used for analysis

• GBP/NZD is trading 0.18% higher on the day at 1.8943 at 0930 GMT.
   
• The pair finds stiff resistance at daily cloud and break above cloud base to see further gains.
   
• Technical studies support upside in the pair. Stochs and RSI show bullish momentum.
   
• The pair is recovering from over 1-year lows at 1.8125 and is extending sideways below 55-EMA resistance.
   
• We notice a bullish divergence on RSI and Stochs which supports upside in the pair.
   
• Break above cloud base finds next major resistance at 38.2% Fib at 1.91 ahead of 100-DMA at 1.9317.
   
• Immediate support is seen at 5-DMA at 1.8908. Break below sees dip till 1.8732.

Support levels - 1.8908 (5-DMA), 1.8732 (23.6% Fib), 1.8625 (Nov 16 low)

Resistance levels - 1.8989 (cloud base), 1.91 (38.2% Fib), 1.9317 (100-DMA)

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