• GBP/NZD recovered some ground after initially falling on Tuesday as the pair was aided by profit-taking on shorts.
•After hitting 1.9327 (38.2%fib )support, pair has retreated to 1.9323, GBP/NZD may need a break below 38.2%fib to clear assault on next major support at 1.9234(23.6%fib).
• Technical signals are bearish as RSI is at 48, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9403(50%fib), any close above will push the pair towards 1.9451 (11DMA)
• Support is seen at 1.9327 (38.2%fib ) and break below could take the pair towards 1.9282 (lower BB).
Recommendation: Good to sell around 1.9400, with stop loss of 1.9480 and target price of 1.9320.
