• GBP/ NZD declined on Thursday after Bank of England increased its bond-buying program,but sharply slowed the pace of its purchases.
• By 1800 GMT the pound was 0.62% down against the New Zealand dollar at 1.9320, having touched a low of 1.9267 earlier.
• The is pair heading towards the lower bollinger band, as for sterling turns more negative. Only a break and daily close above 1.9595 (38.2% fib)will shift bias to the upside.
• Technical signals are bearish as RSI is at 31, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, immediate resistance is located at 1.9323 (5 DMA) any close above will push the pair towards 1.9595 (38.2% fib).
• On the downside, immediate support is seen at 1.9222 (Lower BB ) and break below could take the pair towards 1.9200 (Psychological level).
Recommendation: Good to sell on rallies around 1.9350, with stop loss of 1.9600 and target price of 1.9250.
