• GBP/NZD declined sharply on Wednesday after unexpectedly soft UK CPI shifted UK rate expectations lower
• British annual consumer price inflation fell to 6.7% last month. Economists polled had forecast CPI would rise to 7.0% from July's 6.8%
• A close below support at 2.0721will give further momentum to bears, opening the way for a run towards 2.0650 level.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 5, 10 and 21 DMAs are trending down.
• Immediate resistance is located at 2.0845 (38.2 % fib),any close above will push the pair towards 2.0921 (5DMA).
• Immediate support is seen at 2.0721 (Daily low) and break below could take the pair towards 2.0654(23.6 % fib)
Recommendation: Good to sell below 2.0760, with stop loss of 2.0850 and target price of 2.0650
