• GBP/NZD initially gained on Wednesday but gave up most of the ground as Brexit tensions resurfaced as UK and EU appeared far from reaching Brexit deal on Northern Ireland.
•As negotiations between the European Union and UK approach the endgame, both sides are playing hardball, which could be the trigger for the next leg lower in the pair.
• Bearish trending setup in place as 5, 10 & 21 DMAs track lower, while RSI is lower at 34.
• Immediate resistance is located at 1.9030(50%fib), any close above will push the pair towards 1.9105 (61.8%fib).
• Immediate support is seen at 1.8957(38.2%fib ) and break below could take the pair towards 1.8860 (23.6%fib).
Recommendation: Good to sell around 1.9000, with stop loss of 1.9100 and target price of 1.8940.
