FxWirePro: GBP/NZD holds support at 110-EMA, eyes 61.8% Fib at 1.95 on break below

GBP/NZD chart on Trading View used for analysis

• GBP/NZD is trading largely muted at the time of writing, at 1.9631 at the time of writing.
   
• The pair is in a downtrend since 10th Oct after hitting multi-month highs of 2.047.
   
• Price action is currently holding support at 110-EMA at 1.96, break below will see resumption of weakness.
   
• Technical studies on daily charts are turning bearish. The pair has been on the decline for the 4th straight week.
   
• Next major support lies at 61.8% Fib at 1.9505 ahead of 1.93 (major trendline support).
   
• Rejection and bounce off 110-EMA eyes immediate resistance at 1.9761 (55-EMA) ahead of 1.9858 (21-EMA).

Support levels - 1.96 (110-EMA), 1.95 (61.8% Fib), 1.93 (trendline)

Resistance levels - 1.9695 (5-DMA), 1.9761 (55-EMA), 1.9857 (21-EMA)

Recommendation: Good to stay short on break below 110-EMA, SL: 1.9695, TP: 1.95/ 1.93

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.