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FxWirePro: GBP/NZD pauses decline, downside risk remains

• GBP/NZD recovered some ground   after initially falling on Tuesday as the pair was aided by profit-taking on shorts.

•After hitting 1.9327 (38.2%fib )support, pair has retreated to 1.9323, GBP/NZD may need a break below 38.2%fib to clear  assault on next major support at 1.9234(23.6%fib).

• Technical signals are bearish as RSI is at 48, daily momentum studies  5, 9 and 10 DMAs are trending down.

• Immediate resistance is located at 1.9403(50%fib), any close above will push the pair towards 1.9451 (11DMA)

• Support is seen at 1.9327 (38.2%fib ) and break below could take the pair towards 1.9282 (lower BB).

Recommendation: Good to sell around 1.9400, with stop loss of 1.9480 and target price of 1.9320.

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