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FxWirePro: GBP/ NZD capped by key fibo resistance ,bears set to regain control

• GBP/NZD strengthened on Monday but gains were limited as investors awaited key  U.K  inflation readings due this week .

• Upcoming UK CPI and PMI readings are likely to play pivotal roles in evaluating the GBP's trend.

• At GMT 17:52, the pair was trading up 0.35 percent  at 2.0585 recovering from daily low (2.0502)  

• Technical signals are bearish as RSI is heading down at 47   , daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 2.0615 (38.2%fib ), any close above will push the pair towards 2.0701 (Feb 9th high).

• Strong support is seen at 2.0507(50%fib) and break below could take the pair towards 2.0382 (61.8%fib).

Recommendation: Good to sell on  around 2.0590, with stop loss of 2.0700 and target price of 2.0500
 

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