FxWirePro: GBP/NZD finds strong support at 55-EMA at 1.9230, weakness only on break below

• GBP/NZD finds strong support at 55-EMA at 1.9230, break below required for further weakness.
   
• Expectations of a rate hike from the BoE in May are likely to keep the pound supported.
   
• On the data front, focus remains on NIESR GDP estimate, industrial and manufacturing production due later today.
   
• UK data prints are unlikely to change the market’s expectations of a rate hike from BoE.
   
• Technical studies are bearish. But the pair requires a decisive break below 55-EMA to extend weakness.
   
• On the upside, retrace above 20-DMA at 1.9387 will invalidate our bearish bias.
   
• Break below 55-EMA eyes 100-DMA at 0.9189. Break below 100-DMA could see test of 1.9130 (Triangle base).

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.

Recommendation: Book partial profits at lows. Watch out for breach at 55-EMA for further weakness.

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