FxWirePro: GBP/NZD drops to one week low with plenty more downside potential

• GBP/NZD declined sharply on Friday as buoyant risk sentiment and expectation RBNZ will start reducing interest rates later this year boosted kiwi dollar 

• Median forecasts showed rates at 4.10% by end-year, 25 basis points higher than the April poll. The RBNZ was predicted to cut rates by 50 basis points this year, a separate   poll showed.

• GBP/NZD remains vulnerable, only a break and daily close above 61.8% fib   will shift bias to the upside.

• Immediate resistance is located at 2.0926 (38.2% fib), any close above will push the pair towards 2.1000 (Psychological level).

• Strong support is seen at 2.0820 (38.2% fib) and break below could take the pair towards  2.0756 (Jan 24th low).

Recommendation: Good to sell on  around 2.0900, with stop loss of 2.0980 and target price of 2.0820