FxWirePro : GBP/NZD drop accelerates on central bank talk, good to sell on rally

• GBP/NZD dipped on Tuesday as relatively hawkish comments by RBNZ   led the Kiwi dollar to gain against pound.

• New Zealand's central bank said on Tuesday it would soon begin consulting on ways to tighten mortgage lending standards, as it tries to control an inflated housing market and protect home buyers.

• At GMT 20:54, the pair was trading down 0.02  percent  at 1.9820 after reaching daily low at 1.9805.

• Technicals are favouring bearish sentiment as RSI is turning lower and the pair is trading below   5 & 9-DMAs. 

• Immediate resistance is located at 1.9866 (38.2% fib), any close above will push the pair towards 1.9954 (23.6%fib).

• Support is seen at 1.9802 (50%fib ) and break below could take the pair towards 1.9731 (61.8%  fib).

Recommendation: Good to sell  around 1.9820, with stop loss of 1.9940 and target price of 1.9760.