FxWirePro:GBP/NZD extends drop, faces 23.6%fib support

• GBP/NZD declined on Monday as   kiwi dollar rose higher as NZ inflation jumped above expectations to a decade high.

• New Zealand’s quarterly inflation gauge rose 2.2% in the September quarter, pushed by a mix of temporary factors, from 1.3% in June, the strongest quarterly increase in consumer prices since the 1980’s

• Selling pressure will remain in the short-term, only a move above 1.9471 ( 38.2 % fib) strong resistance  will shift the bias higher.

• Technical signals show the pair could lose more ground as RSI is at 38 bearish, and 9, 11,21 DMA’s are trending south.

• Immediate resistance is located at 1.9471 (38.2%fib), any close above will push the pair towards 1.9513 (50%fib).

• Immediate support is seen at 1.9362 (Daily low) and break below could take the pair towards 1.9332 (23.6%fib).

Recommendation: Good to sell round 1.9380, with stop loss of 1.9480 and target price of 1.9290