FxWirePro: GBP/NZD falls on soft UK labor data

• GBP/NZD fell on Tuesday as weaker-than-expected UK labor market data pressured the pound.

• UK data for the three months ending September showed unemployment rising to 5% alongside a slowdown in wage growth.

• British pay growth eased in the three months ending September, according to Tuesday’s data, boosting forecasts of a Bank of England rate reduction next month.

• The ONS reported Tuesday that pay growth, excluding bonuses, slowed slightly to 4.6% in the three months to September compared with a year earlier.

• Weak employment and wage data bolstered the argument for Bank of England doves pushing for a rate cut at the December 18 meeting, as signs of a slowing UK economy accumulate.

• Immediate resistance is located at 2.3374 ( Daily high), any close above will push the pair towards 2.3496 (23.6% fib).

•  Immediate support is seen at 2.3183(SMA20) and break below could take the pair towards 2.3112 (38.2%fib).

 Recommendation: Good to sell around 2.3270, with stop loss of 2.3360 and target price of 2.3180