FxWirePro :GBP/NZD falls sharply, set for bigger drop

•GBP/NZD saw a sharp decline on Thursday following a report showed that British factory activity shrank in December.

•British factory activity contracted at its fastest rate in 11 months in December, a survey showed on Thursday, marking the latest in a series of weak economic readings.

• The S&P Global UK Manufacturing Purchasing Managers' Index fell to 47.0 in December, down from 48.0 in November.

• A daily close above 2.2045 (50% fib) will further improve the technical outlook, and open the possibility of a rally towards  2.21900 level.

• Immediate resistance is located at 2.2191 (38.2 % fib),any close above will push the pair towards 2.2377 (23.6 % fib).

• Strong support is seen at 2.2045 (50% fib) and break below could take the pair towards 2.1877(61.8% fib).

Recommendation: Good to sell below 2.2185 , with stop loss of 2.2300 and target price of 2.2050