- GBP/NZD fails to close below 50-DMA at 1.9091, we see further weakness only on decisive break below.
- The pound sterling remains supported ahead of Nov retail sales data and BoE decision.
- An upbeat reading could be bullish for the GBP, while a low reading will accentuate negative or bearish bias.
- That said, volatility may be short-lived, as investors look forward to the BOE rate decision for further impetus.
- Successive spinning top and Doji formation at highs reinforces weakness in the pair.
- Indicators on weekly charts are turning bearish. Stochs and RSI are on verge of a rollover from overbought levels.
Support levels - 1.9105 (50-DMA), 1.9098 (23.6% Fib retrace of 1.67049 to 1.98383 rally), 1.8785 (Nov 9 lows)
Resistance levels - 1.9268 (5-DMA), 1.9409 (5W SMA), 1.9417 (20-DMA)
Recommendation: Good to go short on break below 50-DMA, SL: 1.94, TP: 1.8785/ 1.8641/ 1.8350.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 22.826 (Neutral), while Hourly NZD Spot Index was at 99.9087 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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