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FxWirePro: GBP/NZD recovery facing a steep rock, likely to falter

• GBP/NZD  declined on Wednesday   as worries over a possible recession   weighed on sentiment. 

• Much of the market turmoil in UK is due to a surging inflation rate which is the highest among Group of Seven economies.

• The is pair heading towards the 38.2% fib support, as near term direction of the pair is likely to be driven by current price action.  

• Technical are bearish, daily RSI is negative at 47, daily momentum studies  21 and 30 DMAs are trending down. 

• Immediate resistance is located at 1.9031(38.2% fib), any close above will push the pair towards 1.9087 (30DMA).

• Strong support is seen at 1.8933 (38.2% fib)and break below could take the pair towards 1.8809 (23.6% fib).

Recommendation: Good to sell on  around 1.9010, with stop loss of 1.9200, and target price of 1.8940.

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