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FxWirePro: GBP/NZD bearish again as upside bias reverses ahead of BoE rate decision

• GBP/NZD   declined  on Wednesday as braced for Bank of England’s policy announcement on Thursday.

• The Bank of England is expected to keep rates on hold at 5.25%, the BoE  remains wary of low growth and recession even as UK inflation, core and headline, hold above 6%.

•  GBP/NZD  dropped swiftly from 2.0975  to test support at  2.0742. Break lower risks run towards 2.0600 level

• Technical signals are bearish as RSI is at 49, daily momentum studies  5,9 and 10 DMAs are trending down.

• Immediate resistance is located at 2.0858 ( 50%fib), any close above will push the pair towards 2.0928 (Oct 26th high)

• Strong support is seen at 2.0742 (38.2%fib ) and break below could take the pair towards 2.0672 (21DMA).

Recommendation: Good to sell  around 2.0800  , with stop loss of 2.0950 and target price of 2.0720

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