• 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
