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FxWirePro:GBP/NZD extends drop, faces 23.6%fib support

• GBP/NZD declined on Thursday  as sterling attracted sellers after  Bank of England (BoE) adopted a more dovish tone on inflation.

•Bank of England  raised its main interest rate but   dropped its pledge to  respond forcefully, as necessary  to signs of further inflationary pressure

• By 17:37 GMT, the pound was down 0.65% against the kiwi dollar to $1.8888. It dropped as low as 1.8846 after the decision.

• Todays drop has put GBP/NZD back below 38.2%fib and has put the 23.6%fib support in play.

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

• Immediate resistance is located at 1.8948 (38.2%fib), any close above will push the pair towards 1.9034(5DMA).

• Immediate support is seen at 1.8846 (Daily low) and break below could take the pair towards 1.8783 (23.6%fib).

Recommendation: Good to sell round 1.8890, with stop loss of 1.8980 and target price of 1.8800

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