FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(GBPUSD and CADJPY) for the day
FxWirePro:GBP/NZD extends drop, faces 50%fib support
• GBP/NZD declined on Friday as commodity-linked currencies like kiwi got boosted from higher oil price.
• Oil price rose by more than 2% on Friday supported by tight supply. Crude has gained support from the almost total shutdown of output in OPEC member Libya due to unrest.
• GBP/NZD in danger of crashing under major fibo support, clear break of 1.9389(50%fib) opens up 1.9300 level.
•GBP/NZD bulls must regain above 38.2%fib resistance to stem the bearish tide and a rise above the (23rd June high) at 1.9585 to regain momentum.
• Immediate resistance is located at 1.9549 (38.2%fib), any close above will push the pair towards 1.9585 (23rd June high ).
• Immediate support is seen at 1.9389(50%fib) and break below could take the pair towards 1.9353 (21DMA).
Recommendation: Good to sell round 1.9420, with stop loss of 1.9530 and target price of 1.9340