FxWirePro GBP/NZD drops on dovish BoE comments, more downside expected

• GBP/NZD declined on Friday  as pound was negatively impacted by   dovish comments from Bank of England Deputy Governor Dave Ramsden.

• BoE's Ramsden suggested that inflation might linger around the central bank's 2% target for the next three years instead of surging higher later this year, as projected in the BoE's latest forecasts.

• Meanwhile, data showed UK retail sales stagnated in March, the first time sales have not grown in monthly terms since December.

• GBP/NZD focus is on 2.1003 (38.2%fib)support, a break below will accelerate downtrend  towards 2.0900 level. 

• Immediate resistance is located at 2.1068(SMA 5), any close above will push the pair towards 2.1157 (23.6%fib).

• Strong support is seen at 2.1003 (38.2%fib) and break below could take the pair towards 2.0886(50%fib).

Recommendation: Good to sell on  around 2.1010 , with stop loss of 2.1100  and target price of 2.0900