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FxWirePro: GBP/NZD neutral in the near-term, scope for downward resumption

• GBP/NZD edged lower on Monday as the pound struggled against the kiwi dollar amid ongoing uncertainty surrounding UK fiscal policy.

• Attention this week is  likely to be on British inflation data on Wednesday.Consumer prices are expected to have risen 2.6% annually in December, in line with November.

•Futures markets are pricing in around 16 basis points of easing at the BoE's February meeting, implying around a 65% chance of a quarter-point rate cut.

• Immediate resistance is located at 2.1994 (38.2%fib), any close above will push the pair towards 2.2064 (Jan 1 10th high).

• Strong support is seen at 2.2176(38.2%fib) and break below could take the pair towards 2.1596( (23.6%fib)

Recommendation: Good to sell around 2.1950 with stop loss of 2.2050 and target price of 2.1800

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