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FxWirePro: GBP/NZD extends drop, faces 23.6%fib support

• GBP/NZD dipped on Monday  as rekindling recession fears in the UK and escalating middle east tensions weighed on sterling .

•  The conflict in the Middle East comes at a time when markets are jittery and bond yields around the world are at multi-year highs..

• Underlying trend for the pair remains bearish. A break below 1.8948 (23.6%fib)  might spur increased downward momentum.

• Technical signals are bearish as RSI is trending down at 30, daily momentum studies  5, 9 and 10 DMAs are pointing southwards.

• Immediate resistance is located at 2.0431(38.2%fib), any close above will push the pair towards 2.0431(50%fib).

• Strong support is seen at 2.0288 (23.6%fib) and break below could take the pair towards 2.0103 (Lower BB).

Recommendation: Good to sell   around  2.0350  with stop loss of 2.0500  and target price of 2.0250

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