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

• GBP/NZD dipped  on Friday  as  New Zealand dollar   bounced on rate hike expectation   .

• New Zealand dollar   has benefited from a noticeable change in market expectations for interest rates, driven partly by unexpectedly strong local employment data.

• The is pair heading towards the 38.2%fib, as near term direction of the pair is likely to be driven by current price action.  

• Technical signals are bearish as RSI is heading down at 45  , daily momentum studies  5, 9 and 11 DMAs are trending southwards. 

• Immediate resistance is located at 2.0605 (50%fib ), any close above will push the pair towards 2.0688 (61.8%fib).

• Strong support is seen at 2.0517(38.2%fib) and break below could take the pair towards 2.0412(23.6%fib).

Recommendation: Good to sell on  around 2.0570, with stop loss of 2.0700 and target price of 2.0500
 

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