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FxWirePro: GBP/NZD runs out of steam but maintains bullish outlook

• GBP/NZD  retreated   on Friday as the pair rise faded after data showed a bigger-than-expected drop in retail sales.

• Data showed sales volumes last month were 1.2% lower than in June. Economists polled had forecast a 0.5% drop.

• GBP/NZD  remains well above level 2.1407 (5DMA),Daily  close above 23.6% fib   will increase the scope for much bigger gains 

• Technical signals are bullish as RSI is at 72 daily momentum studies  5, 9 and 10 DMAs are trending north. 

• Immediate resistance is located at 2.1541 (23.6% fib  ), any close above will push the pair towards 2.1600 (Higher BB).

• Strong support is seen at 2.1407 (5DMA) and break below could take the pair towards 2.1320 (38.2% fib).

Recommendation: Good to buy on dips around 2.1470, with stop loss of 2.1300 and target price of 2.1600
 

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