FxWirePro:GBP/NZD drops below 1.9450 level on broad risk selloff, more downside expected
• GBP/NZD dipped on Monday as global sell-off prompted by China’s struggling Evergrande hit sterling.
• Default worries surrounding China’s Evergrande, the world’s most indebted property developer, hit sterling.
•The pair is testing support 1.9414 (23.6% fib), a daily close below will accelerate downtrend towards 1.9400 (Psychological level ).
• Technicals are favouring bearish sentiment as RSI is at 40 and the pair is trading below 5, 9 & 11-DMAs.
• Immediate resistance is located at 1.9458 (5DMA), any close above will push the pair towards 1.9536(38.2%fib).
• Support is seen at 1.9414 (23.6% fib)and break below could take the pair towards 1.9358(9th Sep).
Recommendation: Good to sell around 1.9430, with stop loss of 1.9500 and target price of 1.9370.