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FxWirePro:GBP/NZD unlikely to invite any further GBP strength, good to sell on rally

• GBP/NZD dipped on Thursday as spiralling inflation fed into fears of a deep recession in Britain weighed on the pair.

• Investors are worried about the British economy's outlook, with a surge in energy prices in winter expected to squeeze consumer spending power further.

•Technical signals are bearish as RSI is at 42, daily momentum studies  5, 9 and 11 DMAs are trending  down.

• Immediate resistance is located at 1.9015 (9DMA), any close above will push the pair towards 1.9064 (38.2%fib)

• Immediate support is seen at 1.8946 (23.6%fib ) and break below could take the pair towards 1.8849 (Lower BB).

Recommendation: Good to sell  around 1.9000, with stop loss of 1.9100 and target price of 1.8880.

 

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