FxWirePro: GBP/NZD pauses downside above 50% Fib, break below targets 200-DMA at 1.8407

• GBP/NZD has shown a decisive break below 100-DMA, bears now target 200-DMA at 1.8407.
   
• Downside is currently holding above 50% Fib retrace of 1.73375 to 1.98383 rally at 1.8587.
   
• Break below to see further drag. Violation at 200-DMA will see further downside.
   
• Price action has dipped below daily Ichimoku cloud and RSI and Stochs support further weakness.
   
• 5-DMA is sharply lower and caps upside attempts in the pair. Break above could see upside till 20-DMA at 1.8975.

Support levels - 1.8587 (50% Fib retrace of 1.73375 to 1.98383 rally), 1.8407 (200-DMA), 1.8292 (61.8% Fib)

Resistance levels - 1.8793 (5-DMA), 1.8835 (100-DMA), 1.8830 (30% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-NZD-rejected-at-50-DMA-slips-below-5-DMA-bias-lower-1081120) has hit all targets.

Recommendation: Watch out for break below 50% Fib for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 23.3838 (Neutral), while Hourly NZD Spot Index was at 66.9709 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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