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FxWirePro:GBP/ NZD neutral in the near-term, scope for downward resumption

• GBP/NZD initially gained  on Tuesday    but gave up ground as tepid UK retail sales weighed on Sterling.

• The British Retail Consortium said spending in store chains rose by 6.9% in annual terms in December, but this was a long way off consumer price inflation, which hit 10.7% in November.

• The pair  remains weak and might fall towards  1.9000 level as    UK's inflation and growth uncertainties will continue to weigh on sterling.

• Technical signals are bearish as RSI is heading down at 45  , daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.9099 (5DMA ), any close above will push the pair towards 1.9152 (38.2%fib).

• Strong support is seen at 1.9056(Daily low) and break below could take the pair towards 1.8954 (23.6%fib).

Recommendation: Good to sell on  around 1.9100, with stop loss of 1.9180 and target price of 1.9000

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