FxWirePro: GBP/NZD recovery facing a steep rock, likely to falter
• GBP/NZD recovered some ground on Friday as stronger than expected UK GDP data, but gains were limited as investors focus remain tied to the Ukraine conflict. •Data showed that gross domestic product (GDP) grew by 0.8% …
• GBP/NZD recovered some ground on Friday as stronger than expected UK GDP data, but gains were limited as investors focus remain tied to the Ukraine conflict.
•Data showed that gross domestic product (GDP) grew by 0.8% in month-on-month terms in January after a 0.2% decline in December.
• The pair is currently approaching resistance at 1.9223 ( 38.2%fib). Resistance at 1.9223 is likely to cap further upside in the pair.
• Technical signals are bearish as RSI is at 24, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9223 ( 38.2%fib), any close above will push the pair towards 1.9363 (50%fib).
• Strong support is seen at 1.9033(23.6%fib) and break below could take the pair towards 1.8930 (Lower BB).
Recommendation: Good to sell on rally around 1.9150, with stop loss of 1.9240 and target price of 1.9080.
