• GBP/NZD declined sharply on Friday as increased risk appetite and month-end flows drove kiwi dollar higher against pound.
• Consumer confidence in New Zealand was slightly higher in September compared with the prior month . The consumer confidence index rose to 86.4 in September from August's 85.0.
• A close below support at 2.0278 (23.6 % fib)will give further momentum to bears, opening the way for a run towards 2.0200 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 2.0463 (38.2 % fib),any close above will push the pair towards 2.1159(9DMA).
• Immediate support is seen at 2.0278 (23.6 % fib) and break below could take the pair towards 2.0198(Lower BB)
Recommendation: Good to sell below 2.0360, with stop loss of 2.0500 and target price of 2.0250
