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FxWirePro: GBP/NZD bulls back away from 1.9500 level after US CPI data, good to sell on rally

• GBP/NZD  initially  strengthened on Thursday but some of earlier gains faded    as investors digested US CPI data.

• Data showed U.S.consumer prices rose less than expected in October, spurring bets that the Fed will hike interest rates by a smaller 50 basis points in December.

• The pair inability to hold gains above 1.9586 (14DMA),   may increases the likelihood of a drop towards1.9350 level.

• Technicals are favouring bearish sentiment as RSI is at 45 and the pair is trading below  11,14 & 21-DMAs.

• Immediate resistance is located at 1.9470 (50% fib), any close above will push the pair towards 1.9581 (14DMA)

• Strong support is seen at 1.9341 (38.2% fib)and break below could take the pair towards 1.9258 (Nov 9th low).

Recommendation: Good to sell  around 1.9450, with stop loss of 1.9550 and target price of  1.9320

 

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