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FxWirePro:GBP/NZD set for bigger drop, but close below key fibo needed

• GBP/NZD initially gained  on Monday but rally fizzled as investors focused on the Bank of England’s next moves to tame inflation. 

• The BoE raised interest rates on March 17 but softened its language on the need for more increases.

• Selling pressure will remain in the short-term, only a move above 1.9225 ( 50 % fib) strong resistance  will shift the bias higher.

• Technical signals show the pair could lose more ground as RSI is at 27 bearish, and 5, 9,11 DMA’s are trending south. 

• Immediate resistance is located at 1.9007(9DMA), any close above will push the pair towards 1.9075 (38.2%fib)..

• Immediate support is seen at 1.8900 (23.6%fib) and break below could take the pair towards 1.8755 (Lower BB).

Recommendation: Good to sell round 1.8970, with stop loss of 1.9090 and target price of 1.8900

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