• GBP/NZD declined on Wednesday as less-than-optimistic Brexit comments from Irish Foreign Minister Simon Coveney weighed on pound.
• The comments pushed sterling to session lows by 1.9194. A close below will 1.9179 will unmask 1.9000 Psychological level.
• GBP/NZD remains relatively bearish, having recent shallow pullbacks short-lived so far.
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 39.
• On the upside, immediate resistance is located at 1.9286 (38.2% fib ), any close above will push the pair towards 1.9351(5 DMA).
• On the downside, immediate support is seen at 1.9179 (Lower BB ) and break below could take the pair towards 1.9046 (23.6% fib ).
Recommendation: Good to around 1.9230 with stop loss of 1.9400 and target price of 1.9150.
