• GBP/NZD declined sharply on Wednesday as sterling attracted seller after softer than expected UK November inflation data.
• British inflation fell to its lowest level in almost two years in November, fueling speculation that the Bank of England could slash interest rates in the first half of next year.
• By 18:53 GMT, the pound was down 0.64% against the Kiwi dollar to 2.0153. It dropped as low as 2.0118
• Technical lean bearish, RSI is lower at 30 daily momentum studies 9, 11 and 14 DMA’s are trending down.
• Immediate resistance is located at 2.0270(38.2% fib), any close above will push the pair towards 2.0415 (50% fib).
• Strong support is seen at 2.0118 (23.6% fib) and break below could take the pair towards 2.0000 (Psychological level).
Recommendation: Good to sell on around 2.0160, with stop loss of 2.0280 and target price of 2.0060
