• GBP/NZD declined sharply on Wednesday as New Zealand dollar rose after RBNZ left its accommodative financial policy settings in place as expected.
• The Reserve Bank of New Zealand said it can maintain stimulus till it's assured that inflation and employment targets are achieved.
• The is pair heading towards the lower 38.2%fib, as the pairs outlook turns more negative. Only a break and daily close above 61.8% fib at 1.9498will shift bias to the upside.
• Technical signals are bearish as RSI is at 44, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9393 (21 DMA ), any close above will push the pair towards 1.9444 (21DMA).
• Immediate support is seen at 1.9336 (Daily low ) and break below could take the pair towards 1.9296 (38.2%fib).
Recommendation: Good to sell on rallies around 1.9400, with stop loss of 1.9500 and target price of 1.9310.
