• GBP/NZD recovered some ground on Friday after upbeat UK retail sales but holiday liquidity tempered sterling gains.
• The latest data indicates that UK retail sales experienced a significant surge in November, surpassing expectations. The sales increased by 1.3% from October, with a notable boost attributed to discount sales.
• The underlying trend for the pair remains bearish. A potential break below 23.6%fib support could intensify downward momentum.
• Technical signals are strongly bearish as RSI is lower at 32, moving averages are trending down.
• Immediate resistance is located at 2.0232(38.2% fib), any close above will push the pair towards 2.0342( 50% fib).
• Immediate support is seen at 2.0096(23.6%fib) and break below could take the pair towards 2.0000( Psychological level).
Recommendation: Good to sell around 2.0100, with stop loss of 2.0200 and target price of 2.0020.
