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FxWirePro GBP/NZD eases ahead of UK election, more downside expected

• GBP/NZD eased on Wednesday   as pound   softened against Kiwi ahead of UK election.

• Opinion polls show the centre-left Labour Party is set for a big win in Thursday's vote that would end 14 years of Conservative government and hand Starmer the keys to the prime minister's Number 10 Downing Street office on Friday morning.

• On the data front, S&P Global UK Services Purchasing Managers Index fell in June to 52.1 from 52.9 in May, its lowest reading since November but revised up from a preliminary estimate of 51.2.

• GBP/NZD focus is on 50%fib support, a break below will accelerate losses towards 2.0800 level. 

• Immediate resistance is located at 2.0931(38.2% fib), any close above will push the pair towards 2.1124 (Higher BB).

• Strong support is seen at 2.0844(50%fib) and break below could take the pair towards 2.0743(61.8%fib).

Recommendation: Good to sell on  around 2.0870 , with stop loss of 2.0950  and target price of 2.0800
 

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