• GBP/ NZD extended its yesterday’s losses on Wednesday as improvement in global risk appetite and higher commodity prices made New Zealand dollar gain against the pound.
• The pair attempted to breach support at 1.9164 (23.6% fib) and recovered slightly towards towards 1.9200 level . A decisive break closure below 1.9164 (23.6% fib) could generate further downtrend.
• Technical signals are bearish as RSI is heading down at 29, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.9238 (38.2% fib), any close above will push the pair towards 1.9290 (50% fib).
• Immediate support is seen at 1.9164 (23.6% fib) and break below could take the pair towards 1.9100 (Psychological level).
Recommendation: Good to sell around 1.9220, with stop loss of 1.9280 and target price of 1.9100
