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FxWirePro: GBP/NZD loses momentum but outlook is bullish

 • GBP/NZD   initially gained  on Friday but gave up ground  as  investors focused  turned to next week’s BoE meeting.

•Money markets currently suggest a bold 50 basis point hike from the BoE on Aug. 4 is much more likely than a conservative 25 bps increase.

• GBP/NZD   failed to break resistance  at 1.9431 and  retreated to towards 1.9338 . A daily close above 1.9431  (50%fib) will accelerate further gains.

• Technical signals are mixed as RSI has turned lower, moving averages are mixed.

• Immediate resistance is located at 1.9423 (50%fib), any close above will push the pair towards 1.9512( Higher BB).

• Immediate support is seen at 1.9317(5DMA) and break below could take the pair towards 1.9259(38.2%fib).

 Recommendation: Good to buy  around 1.9330, with stop loss of 1.9200 and target price of  1.9410.

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