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FxWirePro: GBP/NZD drifts lower , could be on verge of a bigger drop

• GBP/NZD declined on Wednesday   after data showed consumer prices returned to a 40-year high in September.

 • British inflation went back into double digits in September, matching a 40-year high hit in July, dealing a fresh blow to households grappling with the cost-of-living crisis.

•The pair is approaching 1.9756 (38.2%fib),a daily close below which will accelerate towards 1.9550 level.

• Immediate resistance is located at 1.9887 ( 5DMA), any close above will push the pair towards 2.0000 ( Psychological level).

• Strong support is seen at 1.9756 (38.2%fib) and break below could take the pair towards 1.9585 ( Oct 12th low).

Recommendation: Good to sell around 1.9800, with stop loss of 1.9900 and target price of 1.9700.    

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