FxWirePro: GBP/NZD gains some upside momentum but still bearish
• GBP/NZD recovered some ground on Tuesday as the pair staged corrective moves from Monday’s collapse.
• The Bank of England and UK Treasury attempted to soothe market concerns after the government announced a raft of unfunded tax cuts.
• GBP/NZD remains vulnerable, only a break and daily close above 1.9111(50% fib) will shift bias to the upside.
• Technical are bearish, daily RSI is negative at 35, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9041 (21DMA ), any close above will push the pair towards 1.9105 (50%fib).
• Strong support is seen at 1.9000 (Psychological level) and break below could take the pair towards 1.8874 (38.2% fib)
Recommendation: Good to sell on around 1.9040, with stop loss of 1.9120 and target price of 1.8950