- GBP/NZD fails to hold break above 20-DMA, we see scope for further weakness.
- Technical studies are bearish. RSI below 50, biased lower. Stochs show bearish momentum.
- The pair is on track to test 100-DMA at 0.9190. Break below 100-DMA could see test of 1.9115 (Triangle base).
- Violation at 'Triangle base' support will see major weakness in the pair. Scope then for test of 1.8883 (38.2% Fib).
- On the flipside, we see immediate resistance at 20-DMA at 1.9376. Decisive breakout there could see some upside.
Support levels - 1.93 (5-DMA), 1.9376 (20-DMA), 1.9420 (Apr 6 high)
Resistance levels - 1.9248 (23.6% Fib), 1.9190 (100-DMA), 1.9134 (Ichi cloud top)
Recommendation: Good to go short on rallies around 1.9285/95, SL: 1.9376, TP: 1.9250/ 1.9190/ 1.9135
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 6.64762 (Neutral), while Hourly NZD Spot Index was at 173.871 (Bullish) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
