FxWirePro: GBP/NZD breaks below 110-EMA, eyes 61.8% Fib at 1.95, stay short

GBP/NZD chart on Trading View used for analysis

• GBP/NZD trades 0.26% lower on the day at 1.9563 at the time of writing.
   
• The pair is in a downtrend since 10th Oct after hitting multi-month highs of 2.047.
   
• Price action is has broken below support at 110-EMA, raising scope for weakness.
   
• Technical studies on daily charts are turning bearish. The pair has been on the decline for the 4th straight week.
   
• Next major support lies at 61.8% Fib at 1.9505 ahead of 1.93 (major trendline support).
   
• Retrace above 110-EMA eyes immediate resistance at 1.9689 (50% Fib) ahead of 1.9753 (55-EMA).

Support levels - 1.9505 (61.8% Fib), 1.93 (trendline)

Resistance levels - 1.9689 (50% Fib), 1.9753 (55-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-NZD-holds-support-at-110-EMA-eyes-618-Fib-at-195-on-break-below-1449984) is progressing well.

Recommendation: Hold for targets.

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