• GBP/NZD declined on Thursday as existing coronavirus global economic worries and heightened Brext-talk attracted sellers.
• GBPNZD has corrected higher over the past two days, however selling pressure will remain in the short-term as long as resistance at 1.9700 (50% fib) holds.
• The pair is approaching to test the 1.9281 support zone, a close below this region could turn the outlook more bearish for the pair.
• Technical signals show bearish momentum , the 14 DMA and 21 DMAs trend south, while RSI is heading south at 35.
• On the upside, Immediate resistance is located at 1.9312 (14 DMA), any close above will push the pair towards 1.9700 (50%fib).
• On the downside, strong support is seen at 1.9281 (23.6% fib) and break below could take the pair towards 1.9127 (Lower BB).
Recommendation: Good to sell on rallies around 1.9350, with stop loss of 1.9700 and target price of 1.9200.
