FxWirePro: GBP/NZD holds support at 50-DMA, bearish divergence keeps scope for downside

13 February 2019, 13:44

GBP/NZD chart on Trading View used for analysis

• GBP/NZD extends weakness, trades 1.25% lower on the day at 1.8896 at 1120 GMT.
   
• Kiwi boosted earlier in the day after RBNZ failed to satisfy dovish expectations.
   
• Further, GBP-selling in the wake of disappointing UK inflation figures for the month of Jan weighs.
   
• UK inflation figures disappointed in January, headline CPI fall 0.8% m/m; yearly rate eases to 1.8%.
   
• Focus now on the upcoming parliament debate on Brexit, scheduled to take place on Thursday - February 14.
   
• Technical studies support weakness. We recommend using upticks to go short.

Support levels - 1.8860 (50-DMA), 1.8760 (Feb 6 low), 1.86 (Jan 11 low)

Resistance levels - 1.9012 (55-EMA), 1.91 (110-EMA), 1.9274 (200-DMA)

For details on FxWirePros Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.