- The pound sterling dented after calls by UK PM for independence Scottish referendum.
- On the positioning front, speculative net GBP shorts have climbed to the highest level since mid-December for the week ended on February 21.
- GBP/NZD breaks below 20-DMA, scope for test of 1.690 (trendline support).
- Technicals are bearishly aligned, RSI and stochs are biased lower.
Support levels - 1.7041 (Jan 31 low), 1.690 (trendline and Feb 7 low), 1.6875 (Jan 17 low)
Resistance levels - 1.7275 (20-DMA), 1.7323 (5-DMA), 1.7387 (100-DMA)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Oversold
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short at current levels, SL: 1.7275, TP: 1.7150/ 1.7040/ 1.690
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -113.959(Highly Bearish), while Hourly NZD Spot Index was at 77.7629 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
