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FxWirePro: GBP/NZD slips lower after UK retail sales disappoint, good to sell on rally

• GBP/NZD  declined on Friday  as the pair attracted sellers after data showed British retail sales fell much more than expected in August.  

• British retail sales fell much more than expected in August, in another sign that the economy is sliding into recession as the cost of living crunch squeezes households' disposable spending.

• The data are likely to add to worries about the strength of demand in Britain's economy.

• Bearish momentum is likely to pick up with a move below 38.2% fib, which would target support at the 1.8970.

• Immediate resistance is located at 1.9131(5DMA), any close above will push the pair towards 1.9164(50%fib).

•Immediate support is seen at 1.8970(12th Sep low ) and break below could take the pair towards 1.8902(23.6%fib).

Recommendation: Good to sell   around 1.9070, with stop loss of 1.9150 and target price of 1.8970.
 

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