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FxWirePro:GBP/NZD hovers around 2.0480 as market await UK GDP data And BoE meeting for further direction

• GBP/NZD initially dipped on Tuesday  but recovered some ground as investors awaited UK GDP data and Bank of England meeting on Thursday.

• Economists and traders believe the central bank will almost definitely maintain interest rates at 5.25%. They will, however, be on the lookout for signals about when borrowing prices could begin to reduce.

• The pair inability to hold gains above 2.0506, 38.2% fib, may increases the likelihood of a drop towards 2.0400 level.  

• Technical are strongly bearish daily RSI is bearish at 42, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 2.0506 (38.2%fib ), any close above will push the pair towards 2.0535(14DMA).

• Strong support is seen at 2.0385(23.6%fib) and break below could take the pair towards 2.0300 (Oct 10th low).

Recommendation: Good to sell around 2.0500, with stop loss of 2.0600 and target price of 2.0400
 

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