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

• GBP/NZD declined on Friday as stronger-than-expected GDP data spurred worries over interest rate cuts by the Bank of England, while U.S. inflation reading for May boosted market sentiment.

Britain's economy grew 0.7% in the first three months of this year, compared with the previous quarter, and came in above an estimate of 0.6% growth, official figures showed.

• The figures came in as Britons are set to vote on July 4 in a parliamentary election, which opinion polls suggest will see Labour Party leader Keir Starmer replace Conservative Rishi Sunak as prime minister.

• Technical signals show the pair could lose more ground in the short-term as RSI is at 49 bearish, daily momentum studies 9, 11 and 21 DMAs are trending  down.

• Immediate resistance is located at 2.0814 (50% fib),any close above will push the pair towards 2.0862 (Daily high ).

• Immediate support is seen at 2.0755 (38.2% fib) and break below could take the pair towards 2.0673 (Lower BB )

Recommendation: Good to sell below 2.0760, with stop loss of 2.0890  and target price of 2.0690