• GBP/NZD initially strengthened on Thursday but some of earlier gains faded as investors digested US CPI data.
• Data showed U.S.consumer prices rose less than expected in October, spurring bets that the Fed will hike interest rates by a smaller 50 basis points in December.
• The pair inability to hold gains above 1.9586 (14DMA), may increases the likelihood of a drop towards1.9350 level.
• Technicals are favouring bearish sentiment as RSI is at 45 and the pair is trading below 11,14 & 21-DMAs.
• Immediate resistance is located at 1.9470 (50% fib), any close above will push the pair towards 1.9581 (14DMA)
• Strong support is seen at 1.9341 (38.2% fib)and break below could take the pair towards 1.9258 (Nov 9th low).
Recommendation: Good to sell around 1.9450, with stop loss of 1.9550 and target price of 1.9320
