- GBP/NZD is trading in an extremely narrow range, below 20-DMA at 1.9050.
- Price action is below daily cloud and technical studies are bearish. Further, bearish RSI divergence adds to bearish bias.
- The pair is currently holding strong trendline support at 1.8925, break below will accentuate weakness.
- Break below 1.8925 raises scope for test of 200-DMA at 1.8549. Violation at 200-DMA could see further weakness.
- On the flipside, 20-DMA is strong resistance at 1.9050. Breakout above daily cloud invalidates bearish bias.
Support levels - 1.8925 (trendline support), 1.8785 (Nov 9 low), 1.8614 (Jan 12 low), 1.8549 (200-DMA)
Resistance levels - 1.9019 (5-DMA), 1.9050 (20-DMA), 1.9136 (cloud top)
Recommendation: Good to go short on break below 1.8925, SL: 1.9050, TP: 1.8785/ 1.87/ 1.8615/ 1.8550.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -54.4754 (Neutral), while Hourly NZD Spot Index was at 40.6541 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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