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FxWirePro: GBP/NZD capped by 9-day moving average, favouring weakness

• GBP/NZD edged slightly higher Wednesday   but gains were limited as UK interim budget update kept bearish pressure on pound.

• UK Finance Minister Jeremy Hunt's autumn statement indicated persistent UK inflation and low growth.

• GBP/NZD remains vulnerable, only a break and daily close above 1.9644 (50% fib) will shift bias to the upside.

• Technical are bearish, daily RSI is negative at 48, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 2.0755 (9DMA ), any close above will push the pair towards 2.0791 (38.2% fib).

• Strong support is seen at 2.0633 (23.6%fib) and break below could take the pair towards 2.0599(Nov 3rd low)

Recommendation: Good to sell on  around 2.0750, with stop loss of 2.0850 and target price of 2.0670

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