• GBP/NZD initially gained on Wednesday but gave up ground as investors digested soft UK economic growth and mixed US inflation data.
• Data showed that UK GDP stagnated for a second consecutive month in July, falling short of forecasts for a 0.2% increase, while industrial production unexpectedly contracted by 0.8%.
• Meanwhile, U.S. Consumer Price Index (CPI) increased by 0.2% last month, consistent with the rise observed in July.
• A daily close fall 38.2%fib will further improve the technical outlook, and open the possibility of a drop towards 1.9500 level
• Immediate resistance is located at 2.1364 (23.6%fib), any close above will push the pair towards 2.1428 (Higher BB).
• Immediate support is seen at2.1220 (38.2%fib ), break below could take the pair towards 2.1110 (50%fib).
Recommendation: Good to sell around 2.1290 with stop loss of 2.1350 and target price of 2.1150
