FxWirePro:GBP/NZD gives back chunk of early gains, good to sell on rally
• GBP/NZD erased some of earlier gains on Friday as surging commodity prices and impressive trade data from China supported New Zealand dollar.
•Aluminum prices approached levels last seen in 2018 and copper prices flirted with 10-year peaks.
• Underlying trend for the pair remains bearish. A break below 1.9179 (23.6%fib) might spur increased downward momentum.
• Technical signals are bearish as RSI is at 43, daily momentum studies 11,14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.9251 ( 11DMA), any close above will push the pair towards 1.9307 (38.2%fib).
• Strong support is seen at 1.9179 (23.6%fib) and break below could take the pair towards 1.9098(Lower BB).
Recommendation: Good to sell on rallies around 1.9240, with stop loss of 1.9330 and target price of 1.9170.