FxWirePro: GBP/NZD neutral in the near-term, scope for downward resumption
• GBP/NZD initially gained on Thursday after UK Prime Minister Liz Truss announced her resignation but paired gains as market awaited new regime. • The resignation followed weeks of financial and political turmoil genera…
• GBP/NZD initially gained on Thursday after UK Prime Minister Liz Truss announced her resignation but paired gains as market awaited new regime.
• The resignation followed weeks of financial and political turmoil generated by adverse market reaction to her government's mini-budget .
• Scope is growing for an eventual break under the 1.9667 (38.2%fib)level, an eventual break below 1.9667 will accelerate further down side towards 1.9500.
• Immediate resistance is located at 1.9887 ( 5DMA), any close above will push the pair towards 2.0000 ( Psychological level).
• Strong support is seen at 1.9667 (38.2%fib) and break below could take the pair towards 1.9551 ( Oct 6th low).
Recommendation: Good to sell around 1.9800, with stop loss of 1.9900 and target price of 1.9700.
