FxWirePro: GBP/NZD drops below 2.2600 level, heads deeper into bear territory

• GBP/NZD dipped on Wednesday as improved   risk sentiment supported kiwi dollar despite mixed Chinese data.

•China’s consumer inflation eased in January, while producer prices remained in deflation, underscoring weak domestic demand and posing a continued challenge for policymakers seeking to support an uneven economic recovery.

•. Data from the National Bureau of Statistics on Wednesday showed the consumer price index rose 0.2% year-on-year, slowing from a 0.8% increase in December and falling short of expectations for a 0.4% gain.

• The producer price index (PPI) fell 1.4% year-on-year, with the downturn easing for a second month but extending a years-long deflationary trend in the world's second-biggest economy that policymakers are battling to overcome. Economists polled by Reuters had expected a 1.5% drop.

• Immediate resistance is located at 2.2649 (38.2%fib), any close above will push the pair towards 2.2793(50%fib).

• Immediate support is seen at 2.2473 (23.6%fib) and break below could take the pair towards 2.2416(Lower BB).

Recommendation: Good to sell around 2.2550 with stop loss of 2.2650 and target price of 2.2470