Description
⋅ The Sterling remains on the defensive ahead of UK inflation data due later in the EU session.
GBP/NZD is in the red for the fourth successive week, more downside on cards.
Ichi cloud weighs on the upside on weekly charts, momentum studies biased lower.
Selling pressure around the Pound has exacerbated following election results, we see scope for test of major trendline support at 1.7140.
On the daily charts, the pair has failed to hold break above 200-DMA on Monday's trade.
Upside remains capped below 5-DMA at 1.7747, we see bearish invalidation only on close above.
Support levels - 1.7433 (Mar 15,16 low), 1.7187 (78.6% Fib), 1.7140 (Trendline & Mar 1 low)
Resistance levels - 1.7566 (61.8% Fib), 1.7708 (200-DMA), 1.7748 (5-DMA)
Good to go short on rallies around 1.7565/75, SL: 1.77, TP: 0.75/ 0.7440/ 1.72/ 1.7140