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FxWirePro: GBP/ NZD key support held, downside risk remains

• GBP/NZD initially dipped on Monday  but recovered some ground as investors focus shifted to UK inflation data on Wednesday.

• UK CPI inflation is scheduled to be released   on Wednesday and is projected to be 4.4% year on year, down from 4.6% before, with the core CPI figure likely to be 5.5%.

• GBP/NZD remains well below 1.8677( 50%fib),Daily  close below 38.2%fib  increase the scope for much bigger drop.

• Technical signals are bearish as RSI is heading down  at 36, daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 2.0444(50%fib ), any close above will push the pair towards 2.0463 (5DMA).

• Strong support is seen at 2.0371(38.2%fib) and break below could take the pair towards 2.0279(23.6%fib).

Recommendation: Good to sell on  around 2.0380 , with stop loss of 2.0500  and target price of 2.0300
 

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