FxWirePro: NZD/USD interim uptrend halts on streaks of bearish patterns – Trading & hedging setup ahead of RBNZ
FxWirePro:GBP/NZD gains some upside momentum but still bearish
• GBP/ NZD recovered some ground on Tuesday as end-of-quarter rebalancing supported some buying interest in sterling .
• Sterling’s gains against New Zealand dollar were unrelated to news and economic developments and more to do with investors rebalancing portfolios.
• The pound was last up 0.23 % against the New Zealand dollar at 1.9192 (GMT 18:27).
• GBP/NZD remains vulnerable, only a break and daily close above 1.9330 (14 DMA) will shift bias to the upside.
• Technicals are strongly bearish, daily RSI is at 32, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9239 (5DMA ), any close above will push the pair towards 1.9284 (23.6% fib).
• Strong support is seen at 1.9121 (Lower BB) and break below could take the pair towards 1.9000 (Psychological level).
Recommendation: Good to sell around 1.9200, with stop loss of 1.9330 and target price of 1.9080