• GBP/NZD declined on Wednesday as sterling attracted sellers after steeper than expected decline in UK July GDP.
• UK July GDP miss is blow for hawks advocating two more rate hikes from Bank of England.
• GBP/NZD is approaching (38.2% fib) support, a break below will accelerate further losses.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 47 bearish, daily momentum studies 5, 10 and 21 DMAs are trending down.
• Immediate resistance is located at 2.1157 (5 DMA),any close above will push the pair towards 2.1225 (23.6 % fib ).
• Immediate support is seen at 2.1103 (38.2% fib) and break below could take the pair towards 2.1052 (Lower BB )
Recommendation: Good to sell below 2.1120, with stop loss of 2.1200 and target price of 2.1050
