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FxWirePro: GBP/NZD recovery limited, scope for a dive through a key fibo

• GBP/NZD  recovered some ground on Friday after upbeat UK retail sales but holiday liquidity tempered sterling gains.

• The latest data indicates that UK retail sales experienced a significant surge in November, surpassing expectations. The sales increased by 1.3% from October, with a notable boost attributed to discount sales.

• The underlying trend for the pair remains bearish. A potential break below 23.6%fib support could intensify downward momentum. 

• Technical signals are strongly bearish as RSI is lower at 32, moving averages are trending down.

• Immediate resistance is located at 2.0232(38.2% fib), any close above will push the pair towards 2.0342( 50% fib).

• Immediate support is seen at 2.0096(23.6%fib) and break below could take the pair towards 2.0000( Psychological level).

 Recommendation: Good to sell around 2.0100, with stop loss of 2.0200 and target price of 2.0020.

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