FxWirePro: GBP/NZD extends drop, faces 50%fib support

• GBP/NZD declined on Thursday as sterling came under pressure from a selloff in global bonds that has driven the UK government's borrowing costs to their highest in over 16 years.

• The UK market has faced significant pressure, with benchmark 10-year gilt yields rising by a quarter point this week to their highest level since 2008, amid waning confidence in Britain’s fiscal outlook.

• The 30-year gilt yield surged above 5.3% this week, its highest since 1998, mirroring the rise in global long-term yields.

.• Immediate resistance is located at 2.2118(38.2%fib), any close above will push the pair towards 2..2201(Jan 7th high).

•Support is seen at 2..21932 (50%fib) and break below could take the pair towards 2..1875(Lower BB).

Recommendation: Good to sell around 2.2050 with stop loss of 2.2150 and target price of 2.1820