• GBP/NZD dipped on Friday as negative UK retail sales data added to an already-gloomy economic outlook.
• Retail sales dropped 0.3% in December, following a revised 0.1% rise in November, according to the ONS.
• Traders added to their bets on Bank of England rate cuts after the figures, and now price in 66 basis points in cuts during 2025.
• A daily close below 38.2%fib will further improve the technical outlook, and open the possibility of a drop towards 2.1700 level.
• Immediate resistance is located at 2.1918(50%fib), any close above will push the pair towards 2.2085(Jan 13th high).
• Immediate support is seen at 2.1692 (38.2%fib) and break below could take the pair towards 2.1640(Lower BB).
Recommendation: Good to sell around 2.1830, with stop loss of 2.1900 and target price of 2.1740
