• GBP/NZD initially gained on Thursday but gave up ground as improved risk appetite drove capital flows to kiwi dollar.
• The pair is currently approaching support at 23.6%fib. A break below will accelerate further trend futher lower.
• Technical signals are bearish as RSI is heading down at 26 , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.8991(5DMA ), any close above will push the pair towards 1.9080 (38.2%fib).
• Strong support is seen at 1.8889(23.6%fib) and break below could take the pair towards 1.8712 (Lower BB).
Recommendation: Good to sell on around 1.8950, with stop loss of 1.9050 and target price of 1.8870
