FxWirePro: GBP/NZD bears set to regain control after Wed failure

• GBP/NZD initially gained on Wednesday but reversed course as souring risk sentiment weighed on the pair.

• The pairs fall below the 1.9220 (50% fib) has increased the growing bearish strength, putting focus on support at 1.9100.

• Sterling has been hit hard this year by surging inflation, a looming recession and concerns that tax cuts and increased public spending under a new government could exacerbate price pressures.

• Technicals are favouring bearish sentiment as RSI is at 49 and the pair is trading below   5,10 & 11-DMAs. 

• Immediate resistance is located at 1.9220 (50% fib), any close above will push the pair towards 1.9299(61.6%fib)

• Strong support is seen at 1.9139 (38.2% fib)and break below could take the pair towards 1.9116 (5DMA).

Recommendation: Good to sell  around 1.9210, with stop loss of 1.9300 0and target price of  1.9150