• GBP/NZD dipped on Friday as frictions in the Brexit process and a gloomy economic outlook due to the coronavirus weighed on pound.
• Underlying trend for the pair remains bearish. A break below 1.8914 (23.6% fib) might spur increased downward momentum.
• At GMT 18:01, the pair was trading 0.61% lower at 1.8938, lowest since 22nd July.
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 34.
• On the upside, Immediate resistance is located at 1.9060( 5 EMA), any close above will push the pair towards 1.9181 (38.2%fib).
• On the downside, strong support is seen at 1.8914 (23.6%fib) and break below could take the pair towards 1.8863 (Lower BB).
Recommendation: Good to sell on rallies around 1.8950, with stop loss of 1.9100 and target price of 1.8880.
