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FxWirePro: GBP/ NZD key support held, downside risk remains

• GBP/NZD initially dipped   but recovered some ground as investors digested RBNZ rate decision.

• The Reserve Bank of New Zealand   held interest rates steady but warned that further policy tightening might be needed

• GBP/NZD remains well below  38.2%fib ,Daily  close below 38.2%fib  increase the scope for much bigger drop

• Technical signals are bearish as RSI is heading down  at 44 , daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 2.0680 (50%fib ), any close above will push the pair towards 2.0709(11DMA).

• Strong support is seen at 2.0598(38.2%fib) and break below could take the pair towards 2.0492(23.6%fib).

Recommendation: Good to sell on  around 2.0650, with stop loss of 2.0750 and target price of 2.0500
 

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