FxWirePro: GBP/NZD reverses recent rally, bias back to downside

• GBP/NZD   declined on Tuesday  following the release of data indicating a loss of momentum in the UK labor market   and a deterioration in business activity for the current month. 

• The  flash preliminary reading of the S&P Global UK Purchasing Managers' Index (PMI) for the services sector fell in October to 49.2 from 49.3 in September .

• Labour market data on Tuesday showed falling numbers of employed people and a small rise in the number who are unemployed, although the jobless rate stayed at 4.2%.

• The pound   erased Monday’s gains against the kiwi dollar , the pair was last down  at 0.64% at  2.0814. 

• Immediate resistance is located at 2.0960 (38.2%fib), any close above will push the pair towards 2.1054 (Sep 15th high).

• Immediate support is seen at 2.0818(50%fib) and break below could take the pair towards 2.0676(61.8%fib).

 Recommendation: Good to sell around 2.0820, with stop loss of 2.0900 and target price of 2.0760