- GBP/NZD holds 50-DMA support at 1.9121, we see further weakness only on decisive break below.
- The pair has resumed downside after brief uptick in the previous session following upbeat U.K. retail sales data.
- Bank of England (BOE) kept interest rates and asset purchase facility unchanged as widely expected.
- Successive spinning top and Doji formation at highs reinforces weakness in the pair.
- Indicators on weekly charts are turning bearish. Stochs and RSI are on verge of a rollover from overbought levels.
- Bearish divergence noted on RSI and Stochs on daily charts which supports weakness in the pair.
Support levels - 1.9121 (50-DMA), 1.9098 (23.6% Fib retrace of 1.67049 to 1.98383 rally), 1.8785 (Nov 9 lows)
Resistance levels - 1.9196 (5-DMA), 1.9408 (20-DMA), 1.9534 (Nov 17 high)
Recommendation: Good to go short on break below 50-DMA, SL: 1.94, TP: 1.8785/ 1.8641/ 1.8350.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -14.4061 (Neutral), while Hourly NZD Spot Index was at 102.081 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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