• GBP/NZD declined on Thursday as the risk of a recession, soaring inflation weighed down on the sterling.
• Investors kept a close watch on surging COVID cases in China as worries remained about the impact of surging infections on any recovery in the world's second-largest economy.
• GBP/NZD is now on course to register a close below the 23.6%fib support, chart points to bigger drop towards 1.8850.
• Technical signals are bearish as RSI is heading down at 40 , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.9103(5DMA), any close above will push the pair towards 1.9163 (21DMA).
• Immediate support is seen at 1.8956 (23.6%fib) and break below could take the pair towards 1.8878 (Sep 27th low).
Recommendation: Good to sell around 1.9000 with stop loss of 1.9080 and target price of 1.8920
