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FxWirePro:GBP/NZD sinks to 1-week low with plenty more downside potential

• GBP/NZD dipped on Wednesday   as investors ignored  slightly RBNZ dovish statement  which suggested a possible end to the monetary policy tightening cycle.

•  The Reserve Bank of New Zealand (RBNZ) wrapped up its latest policy meeting by keeping rates at 5.5% as expected, ending a run of 12 increases that lifted rates by a total 525 basis points.

• At GMT 17:05, the pair was trading down 1.27 percent  at 2.6010.

• Technicals are favouring bearish sentiment as RSI is at 49 and the pair is trading below   11 & 21-DMAs.

• Immediate resistance is located at 2.0700(38.2% fib), any close above will push the pair towards 2.0806 (38.2% fib)

• Support is seen at 2.6010(Daily low) and break below could take the pair towards 2.528  (50% fib).

Recommendation: Good to sell  around 2.0620, with stop loss of 2.0690 and target price of 2.0510

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