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FxWirePro :GBP/NZD drops to intra-day low on softer than expected UK CPI data

• GBP/NZD  fell sharply on Wednesday as sterling was weighed on below-forecast UK Jan CPI print.

•Official data showed that British inflation remained unchanged at 4.0% in January, defying predictions of an increase.

• At GMT 14:30, the pair was trading down 0.28 percent  at 1.9078 after reaching daily low at 1.9125.

• Bearish are on course to force a daily close under 38.2%fib support,that would open the pathway to much bigger losses.

• Technicals are favouring bearish sentiment as RSI is at 38  and the pair is trading below   11 & 21-DMAs.

• Immediate resistance is located at 2.0763 (38.2%fib), any close above will push the pair towards 2.0815 (Daily high)

• Immediate support is seen at 2.0633 (38.2%fib ) and break below could take the pair towards 2.0547 (Lower BB).

Recommendation: Good to sell  around 2.0640, with stop loss of 2.0800 and target price of 2.0560.

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