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FxWirePro: GBP/NZD reverses recent rally, bias back to downside

• GBP/NZD dipped on Friday as  the pair erased about half of Thursday's gains following conflicting UK PMI data.

• The S&P Global/CIPS UK Composite PMI - spanning services and manufacturing firms - rose to 51.7.

• Meanwhile manufacturing's reading fell to 46.4, reversing some of November's improvement and representing the 17th consecutive month of contraction.

• Technical signals are bearish as RSI is at 39, daily momentum studies  5, 9 and 10 DMAs are trending down.

• Immediate resistance is located at 2.0465(5DMA), any close above will push the pair towards 2.0497 (50% fib).

• Strong support is seen at 2.0383(38.2% fib) and break below could take the pair towards 2.0247 (23.6% fib).

Recommendation: Good to sell on  around 2.0400, with stop loss of 2.0500 and target price of 2.0320

 
 

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