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FxWirePro: GBP/NZD drifts lower ,could be on verge of bigger drop

• GBP/NZD declined on Tuesday   as  investors awaited  the Jackson Hole Symposium this week.

• UK Aug flash PMIs on Wednesday  is seen soft may diminish BoE rate expectations but Powell comments on Friday more meaningful.

• GBP/NZD drops below the 5-DMA, slide halts at the 2.1399 (38.2%fib),charts points drop towards 2.1250.

• From a technical viewpoint, RSI is turning lower ,moving averages 5,9 DMA’s are trending down.

• Immediate resistance is located at  2.1537(Daily high), any close above will push the pair towards 2.1609(23.6%fib).

• Strong support is seen at 2.1399 (38.2%fib) and break below could take the pair towards 2.1357 (5DMA).

 Recommendation: Good to sell below 2.1450, with stop loss of 2.1550 and target price of 2.1300

 

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