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FxWirePro :GBP/NZD drop accelerates after Bank of England holds rates steady, good sell on rally

• GBP/NZD declined  sharply on Thursday  after the Bank of England held interest rates steady, indicating an end to its rate-hike cycle.

• Bank of England ‘s move followed the U.S. Federal Reserve holding its interest rates steady on Wednesday.

• A close below   support at 23.6 % fib support will give further momentum to bears, opening the way for a run towards 2.0600 level.

• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 5, 10 and 21 DMAs are trending  down.

• Immediate resistance is located at 2.0845 (38.2 % fib),any close above will push the pair towards 2.0881 (5DMA).

• Immediate support is seen at 2.0690 (23.6 % fib) and break below could take the pair towards  2.0610 (July 25th low)

Recommendation: Good to sell below 2.0720, with stop loss of 2.0850 and target price of 2.0600

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