• GBP/NZD declined on Wednesday as worries over a possible recession weighed on sentiment.
• Much of the market turmoil in UK is due to a surging inflation rate which is the highest among Group of Seven economies.
• The is pair heading towards the 38.2% fib support, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 47, daily momentum studies 21 and 30 DMAs are trending down.
• Immediate resistance is located at 1.9031(38.2% fib), any close above will push the pair towards 1.9087 (30DMA).
• Strong support is seen at 1.8933 (38.2% fib)and break below could take the pair towards 1.8809 (23.6% fib).
Recommendation: Good to sell on around 1.9010, with stop loss of 1.9200, and target price of 1.8940.
