FxWirePro: GBP/NZD pauses downside at 1.83 handle, hits fresh 13-month lows, bias lower

GBP/NZD chart on Trading View used for analysis

• GBP/NZD hits fresh 13-month lows at 1.83 handle, bias lower.
   
• Momentum with the bears. Price action has slipped below weekly cloud and rising volatility signals further drag lower.
   
• Markets largely ignored upbeat IHS Markit's Manufacturing PMI. Brexit uncertainty to keep any recovery attempts in the pound capped.
   
• UK IHS Markit's Manufacturing PMI came in at 53.1 in November to beat the analysts' estimate of 51.8.
   
• Investors refrain from making large bets ahead of the upcoming parliamentary vote on May's Brexit proposal in the House of Commons on December 11th.
   
• Theresa May will need 320 members of the UK parliament (MPs) voting for her Brexit deal with only 224 loyal Conservatives being secured now. 
   
• The pair eyes next major support at 61.8% Fib retracement at 1.8143. Bearish invalidation only above 200-DMA.

Support levels - 1.83, 1.8143 (61.8% Fib)

Resistance levels - 1.85 (5-DMA), 1.8587 (50% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-NZD-breaks-below-major-trendline-support-at-18550-on-track-to-test-618-Fib-stay-short-1466608) has hit TP1.

Recommendation: Book partial profits at lows, stay short for further downside.

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