• GBP/NZD declined on Wednesday as risk-sensitive New Zealand dollar rose after RBNZ left its policy on hold as expected.
•RBNZ statement stated the outlook remains highly uncertain. Statement also indicated they could lower the OCR if necessary.
• Bearish momentum is likely to pick up with a move below 38.2% fib, which would target support at the lower BB at 1.9221 and then 23.6% fib at 1.9151.
• Technical signals are bearish as RSI is at 40, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9358(50%fib ), any close above will push the pair towards 1.9455 (61.8% fib).
•Immediate support is seen at 1.9270 (38.2%fib ) and break below could take the pair towards 1.9221 (Lower BB).
Recommendation: Good to sell around 1.9330, with stop loss of 1.9415 and target price of 1.9260.
