FxWirePro: GBP/NZD breaks below 1H 200 SMA, good to go short on rallies

GBP/NZD chart on Trading View used for analysis

• GBP/NZD has broken support at 1H 200 SMA at 1.8818, bias bearish.
   
• The pair is trading 0.65% lower on the day at 1.8788 at the time of writing.
   
• Price action has slipped below 5-DMA and is on track to test major trendline support at 1.8715.
   
• The pair has broken below major support at 110W EMA and finds next major support at 1.8588 (weekly cloud base and 50% Fib). Break below weekly cloud eyes 61.8% Fib at 1.8143. 
   
• On the flipside, stiff resistance is seen at 1.91 (nearly converged 21-EMA and 20-DMA). Break above 200-DMA negates bearish bias.

Support levels - 1.8715 (trendline), 1.8588 (weekly cloud base and 50% Fib)

Resistance levels - 1.8818 (1H 200 SMA), 1.8837 (5-DMA), 1.89

Recommendation: Good to go short on upticks, SL: 1.89, TP: 1.8715/ 1.8660/ 1.86

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