FxWirePro: GBP/NZD set for further slump, shorts hold the advantage

• GBP/NZD  slipped lower on Wednesday as kiwi dollar  surged against pound after on strong employment data

•  Statistics New Zealand reported that the nation's jobless rate rose to 4.6% in the second quarter, up from an upwardly revised 4.4% in the previous three months. Meanwhile, employment increased by 0.4% compared to the prior quarter.

• The positive employment report has diminished market expectations of a rate cut from the Reserve Bank of New Zealand.

• GBP/NZD  fell to  2.1110 close to the 50% fib. A break under 50% fib would unmask 2.1000 level in the short term.

• Strong resistance is located at 2.1253 (38.2% fib), any close above will push the pair towards 2.1436 (23.6% fib)

• Immediate support is   at 2.1096 (50% fib)   and break below could take the pair towards 2.0940 (61.8% fib).

Recommendation: Good to sell around 2.1170, with stop loss of 2.1300 and target price of 2.1050