• GBP/NZD declined on Tuesday after data showed that headline U.S consumer prices rose modestly in November on an annual basis.
• US consumer price index increased 0.1% last month after advancing 0.4% in October
• GBP/NZD drops swiftly from 1.9248 to test support at 1.9080. GBP/NZD may near 1.9000 if support breaks at 1.9080.
• From a technical viewpoint, RSI is strongly bearish at 43, daily momentum studies, 5, 10 and 11 daily MAs are pointing lower.
• Immediate resistance is located at 1.9169 (5DMA), any close above will push the pair towards 1.9283 (38.2% fib).
• Immediate support is seen at 1.9080 (38.2%fib) and break below could take the pair towards 1.8892 (Lower BB).
Recommendation: Good sell around 1.9140, with stop loss of 1.9200 and target price of 1.9080.
