- GBP/NZD is trading a narrow range on the day, up 0.19% as we write.
- The pair is holding above 20-DMA at 1.8892 which is strong support. We see weakness only on break below.
- Technical indicators are with a neutral bias, but bearish divergence on RSI and Stochs keeps scope for downside in the pair.
- Break below 20-DMA finds next major support at 50-DMA at 1.8578 ahead of daily cloud at 1.8385.
- On the flipside, decisive close above 5-DMA at 1.90 could invalidate the bearish bias.
Support levels - 1.8892 (20-DMA), 1.88, 1.8631 (38.2% Fib retrace of 1.7337 to 1.9431 rally), 1.8578 (50-DMA)
Resistance levels - 1.90 (5-DMA), 1.9042 (Nov 6 high), 1.9335 (Oct 25 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 85.4515 (Bullish), while Hourly NZD Spot Index was at 70.5696 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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