• GBP/NZD initially gained on Tuesday but gave up ground as tepid UK retail sales weighed on Sterling.
• The British Retail Consortium said spending in store chains rose by 6.9% in annual terms in December, but this was a long way off consumer price inflation, which hit 10.7% in November.
• The pair remains weak and might fall towards 1.9000 level as UK's inflation and growth uncertainties will continue to weigh on sterling.
• Technical signals are bearish as RSI is heading down at 45 , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.9099 (5DMA ), any close above will push the pair towards 1.9152 (38.2%fib).
• Strong support is seen at 1.9056(Daily low) and break below could take the pair towards 1.8954 (23.6%fib).
Recommendation: Good to sell on around 1.9100, with stop loss of 1.9180 and target price of 1.9000
