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FxWirePro: GBP/NZD neutral in the near-term, scope for downward resumption

• GBP/NZD   recovered some ground on Tuesday   but gains were limited as investors   digested UK factory activity data.

• Britain's manufacturing sector suffered a setback in its attempts to return to growth as output and employment fell more sharply in December than prior month, according to the final reading of the S&P Global/CIPS manufacturing  PMI .

• Bulls will need a clear 38.2% fib to take greater control, failure to break higher will spur fresh downward momentum.

• Technical signals are trending down  as RSI is lower at 38, moving averages are trending down.

• Immediate resistance is located at 2.0235 (38.2% fib), any close above will push the pair towards 2.0333 ( 20th Dec high).

• Immediate support is seen at 2.0100(23.6%fib) and break below could take the pair towards 2.0047 (Lower BB).

 Recommendation: Good to sell around 2.0180, with stop loss of 2.0280 and target price of 2.0030

 

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