• 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
