• GBP/NZD declined on Wednesday as the pair was dragged lower after data showed U.S. consumer prices in April rose at a slower-than-expected pace.
• The Consumer Price Index rose 0.4% after gaining 0.1% in March, the Labor Department said, while in the 12 months through April
• The is pair heading towards the 50%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bearish as RSI is heading down at 43 , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.9947 (5DMA ), any close above will push the pair towards 2.0048(38.2%fib).
• Strong support is seen at 1.9838 (50%fib) and break below could take the pair towards 1.9789 (Lower BB).
Recommendation: Good to sell on around 1.9980 with stop loss of 2.0100 and target price of 1.9920
