• GBP/NZD declined on Thursday as kiwi dollar continued to gain against pound on bets RBNZ will lift interest rates next month.
• Markets imply 92% chance of October rate rise, good chance of another in November.
• Selling pressure will remain in the short-term, only a move above 1.9570 (50%fib) strong resistance will shift the bias higher.
• Technical signals show the pair could lose more ground as RSI is at 30 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.9495 (38.2%fib), any close above will push the pair towards 1.9570 (50%fib).
• Immediate support is seen at 1.9411 (23.6%fib) and break below could take the pair towards 1.9345 (Lower BB).
Recommendation: Good to sell round 1.9440, with stop loss of 1.9570 and target price of 1.9370
