FxWirePro: GBP/NZD attracts selling interest, could be on verge of a bigger drop

• GBP/NZD declined on Tuesday as risk appetite increased  on hopes that China would loosen COVID-19 restrictions.

• Investors hoped China would ease COVID restrictions after Chinese health officials discussed speeding up COVID vaccinations for elderly people. 

• The pair hit daily low at 1.9228, it was last down 0.08% at 1.9366.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is strongly bearish at 46.

•  Immediate resistance is located at 1.9320 (9 DMA), any close above will push the pair towards 1.9439 (50% fib).

• Immediate support is seen at 1.9206 (38.2% fib) and break below could take the pair towards 1.9126 (Nov 4th low).

Recommendation: Good to sell around 1.9300 with stop loss of 1.9380 and target price of 1.9240