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FxWirePro:GBP/NZD downside pressure Is building, scope for sustained break below 50%fib support

• GBP/NZD declined on Wednesday as   the pair was dragged lower after data showed U.S. consumer prices in April rose at a slower-than-expected pace.

• The Consumer Price Index rose 0.4% after gaining 0.1% in March, the Labor Department said, while in the 12 months through April

• The is pair heading towards the 50%fib, as near term direction of the pair is likely to be driven by current price action.  

• Technical signals are bearish as RSI is heading down at 43   , daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.9947 (5DMA ), any close above will push the pair towards 2.0048(38.2%fib).

• Strong support is seen at 1.9838 (50%fib) and break below could take the pair towards 1.9789 (Lower BB).

Recommendation: Good to sell on  around 1.9980  with stop loss of 2.0100 and target price of 1.9920
 

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