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FxWirePro: GBP/NZD claws back some ground but trend is lower still

• GBP/NZD edged higher on Monday but remained defensive as traders speculated about the potential signals that the Bank of England could convey in its upcoming policy meeting.

• The BoE is scheduled to announce its next policy decision on December 14. The market consensus overwhelmingly anticipates that there will be no change in the bank's policies.

• GBP/NZD remains vulnerable, only a break and daily close above 50% fib   will shift bias to the upside.

• Technicals are favouring bearish sentiment as RSI is at 38 and the pair is trading below 11 & 21-DMAs.

• Immediate resistance is located at 2.0534 (38.2% fib), any close above will push the pair towards 2.0595 (5DMA).

• Strong support is seen at 2.0389 (23.6% fib) and break below could take the pair towards 2.0300 (11 Oct Low).

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

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