FxWirePro: GBP/NZD downtrend loses momentum but bearish setup remains

• GBP/NZD initially dipped but recovered some ground on Friday as investors booked profits on shorts ahead of long week end.

• British retail sales rose in January for the first time since August, exceeding expectations, as consumers continued to spend despite a weak economic outlook.

• The 1.7% month-on-month increase in sales volumes surpassed all estimates  , which had forecast a median rise of 0.3%.

• Meanwhile, separate data showed,the preliminary reading of the UK S&P Composite Purchasing Managers' Index (PMI) for February dipped marginally to 50.5 from 50.6 in January.

• Immediate resistance is located at 2.2041 (50% fib), any close above will push the pair towards 2.2207(38.2% fib).

• Strong support is seen at 2.1891 (61.8% fib) and break below could take the pair towards 2.1820 (Lower BB).

Recommendation: Good to sell on  around 2.2040 with stop loss of 2.2100 and target price of 2.1950