• GBP/NZD declined on Thursday as sellers entered the market aggressively after US data showed significant weakness and the market began to feel recession.
•The producer price index (PPI) for final demand dropped 0.5% last month. That was the smallest year-on-year rise since January 2021 and followed a 4.9% advance in February.
•The pair reaches 1.9854 after extending south from 2.0125 (Daily high). 1.9854 is the lowest level since April 10th.
• Immediate resistance is located at 1.9974 (38.2 % fib),any close above will push the pair towards 2.0062 (Higher BB ).
• Immediate support is seen at 1.9808 (50% fib) and break below could take the pair towards 1.9763 (21DMA)
Recommendation: Good to sell below 1.9870, with stop loss of 1.9990 and target price of 1.9790
