• GBP/NZD declined on Friday as divergence in U.S. and UK data and rate expectations kept downward pressure on the pound.
• Soft GBP price action followed upbeat retail sales data, retail sales is much less important than wages/CPI for the BoE
• GBP/NZD fell to 1.2567, keeping near recent trend lows and anchored in its recent 1.2648-1.2550 range despite a rise in UK retail sale.
• A close below support at 50%fib will give further momentum to bears, opening the way for a run towards 2.0450 level.
• Immediate resistance is located at 2.0661(38.2%fib), any close above will push the pair towards 2.0787 (23.6%fib).
• Immediate support is seen at2.0526 (50%fib ), break below could take the pair towards 2.0456 (Lower BB).
Recommendation: Good to sell around 2.0560 with stop loss of 2.0740 and target price of 2.0450
