• GBP/ NZD recovered some ground on Wednesday as lack new catalyst supported some buying interest in the pair .
• GBP/ NZD gains were unrelated to news and economic developments and more to do with investors rebalancing position.
• The pair remains weak and might fall towards 1.8950 due to recession fears in the UK and despite PMI data coming roughly in line with expectations
• Technical are strongly bearish, daily RSI is at 44, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9075 (38.2% fib ), any close above will push the pair towards 1.9153 (21DMA).
• Strong support is seen at 1.9000 (psychological level) and break below could take the pair towards 1.8949 (23.6% fib).
Recommendation: Good to sell around 1.9080, with stop loss of 1.9180 and target price of 1.8980
