• GBP/NZD initially gained on Wednesday but gave up ground as improved risk appetite drove capital flows to kiwi dollar.
• The is pair heading towards the 50%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bearish as RSI is heading down , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.9631 (38.2%fib ), any close above will push the pair towards 1.9683 (Higher BB).
• Strong support is seen at 1.9501(50%fib) and break below could take the pair towards 1.89461 (16th Dec low).
Recommendation: Good to sell on around 1.9600, with stop loss of 1.9680 and target price of 1.9520
