FxWirePro: GBP/NZD breaks below 55-EMA at 1.9228, eyes trendline at 1.9150, stay short

• GBP/NZD has broken below 55-EMA support at 1.9228 raising scope for further weakness.
   
• Expectations of a rate hike from the BoE in May are likely to keep the pound supported.
   
• On the other side, kiwi remains bid after RBNZ's McDermott's comments.
   
• McDermott said the expanded mandate which now includes employment stability will help the RBNZ to achieve price stability moving forward.
   
• Technical studies are bearish. The pair is likely to extend weakness. Next bear target is trendline at 1.9150.
   
• Breach at 1.9150 to see further weakness. Scope then for test of 1.8883 (38.2% Fib).
   
• On the upside, retrace above 20-DMA at 1.9388 will invalidate our bearish bias.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-NZD-fails-to-hold-above-20-DMA-good-to-short-rallies-1244348) has hit TP1/2.

Recommendation: Book partial profits at lows. Hold for further weakness.

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