GBP/NZD chart on Trading View used for analysis
- GBP/NZD has broken below 50-DMA support raising scope for further downside.
- Kiwi boosted earlier in the day after RBNZ failed to satisfy dovish expectations.
- Further, GBP-selling in the wake of Brexit uncertainty keeps bias lower.
- Price action has hit 4-week lows at 1.8743. Bollinger bands are widening which shows increased volalitity.
- Technical studies support weakness. We recommend using upticks to go short.
Support levels - 1.87, 1.86 (Jan 11 low), 1.8227 (Dec 4 low)
Resistance levels - 1.8869 (50-DMA), 1.9003 (55-EMA), 1.9094 (110-EMA)
Recommendation: Good to go short on upticks, SL: 1.8870, TP: 1.87/ 1.86/ 1.8230
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
