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FxWirePro:GBP/ NZD neutral in the near-term, scope for downward resumption

• GBP/ NZD initially gained  on Tuesday  but gave up some ground as improved risk appetite drove capital flows to kiwi dollar.

• The is pair heading towards the 38.2%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 at 46   , daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.9183(5DMA), any close above will push the pair towards 1.9236 (50%fib).

• Strong support is seen at 1.9101(38.2%fib) and break below could take the pair towards 1.9030 (Lower BB).

Recommendation: Good to sell on  around 1.9170, with stop loss of 1.9250 and target price of 1.9070


 

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