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FxWirePro: GBP /NZD set for bigger drop, but close below key fibo needed

• GBP /NZD   dipped on Monday  as encouraging economic data from China aided kiwi dollar.

• Strong lending data and fresh stimulus measures from China ,New Zealand’s biggest trading partner  supported risk-sensitive currencies such as kiwi dollar.

• Bears are on course to force a daily close under 2.1107 (50%fib) support,That would open the pathway to much bigger losses towards at  2.1000 level.

• Technicals   highlight downside risks. The 5, 9 and 11  day moving averages are trending south , daily RSI is bearish  at 47. 

• Immediate resistance is located at 2.1189 (5DMA), any close above will push the pair towards 2.1227(38.2%fib).

• Immediate support is seen at  2.1107 (50%fib) and break below could take the pair towards 2.1068(Lower BB).

Recommendation: Good to sell around    2.1140, with stop loss of 2.1290 and target price of 2.1030

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