FxWirePro: GBP/NZD breaks below 20-DMA, bias lower, stay short

• The pound sterling dented after calls by UK PM for independence Scottish referendum.
   
• On the positioning front, speculative net GBP shorts have climbed to the highest level since mid-December for the week ended on February 21.
   
• GBP/NZD breaks below 20-DMA, scope for test of 1.690 (trendline support).
   
• Technicals are bearishly aligned, RSI and stochs are biased lower.

Support levels - 1.7041 (Jan 31 low), 1.690 (trendline and Feb 7 low), 1.6875 (Jan 17 low)

Resistance levels - 1.7275 (20-DMA), 1.7323 (5-DMA), 1.7387 (100-DMA)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Oversold       
1D          Bearish               Neutral        
1W         Bearish               Neutral
     
Recommendation: Good to go short at current levels, SL: 1.7275, TP: 1.7150/ 1.7040/ 1.690 

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -113.959(Highly Bearish), while Hourly NZD Spot Index was at 77.7629 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.