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FxWirePro: GBP/NZD drops below 1.9000 level, heads deeper into bear territory

• GBP/NZD  declined   on Thursday as  the risk of a recession, soaring inflation weighed down on the sterling.

• Investors kept a close watch on surging COVID cases in China as worries remained about the impact of surging infections on any recovery in the world's second-largest economy. 

• GBP/NZD  is now on course to register a   close below the 23.6%fib support, chart points to bigger drop towards  1.8850. 

• Technical signals are bearish as RSI is heading down  at 40 , daily momentum studies  5, 9 and 11 DMAs are trending down.

• Immediate resistance is located at 1.9103(5DMA), any close above will push the pair towards 1.9163 (21DMA).

• Immediate support is seen at 1.8956 (23.6%fib) and break below could take the pair towards 1.8878 (Sep 27th low).

Recommendation: Good to sell around 1.9000 with stop loss of 1.9080 and target price of 1.8920

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