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FxWirePro: GBP/NZD range to extend until there is game changing news

• GBP/NZD gained upward  traction on Monday  as dovish policy outlook and weak economic data from New Zealand weighed on kiwi dollar . 

• Investors are positioning for a dovish Reserve Bank of New Zealand on Wednesday that could surprise with a super-sized 75 basis point rate cut. In contrast,

• Data showed retail sales in New Zealand fell 0.1% in volume terms last quarter, a smaller drop than many economists had expected thanks to stronger vehicle sales..

• Technicals are favouring bullish sentiment as RSI is at 55 and the pair is trading above 11 & 21-DMAs. 

• Immediate resistance is located at 2.1544 (38.2%fib ), any close above will push the pair towards 2.1589 (2MSMA).

• Strong support is seen at 2.1443 (38.2%fib) and break below could take the pair towards 2.1355(50%fib).

Recommendation: Good to buy   around 2.1500, with stop loss of 2.1400 and target price of 2.1590
 

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