FxWirePro: GBP/NZD edges higher, but faces potential pitfalls

• GBP/NZD pair edged higher on Friday, but gains were limited as the absence of additional macroeconomic catalysts allowed the market  recover slightly .

• The pairs recent decline has been driven by volatile trading in global markets, following last week's weak U.S. jobs data, which heightened fears of an economic downturn.

 • GBP/NZD remains well below 2.1331 ( 38.2%fib),Daily  close below 50%fib wil increase the scope for much bigger drop.

• Immediate resistance is located at 2.1232(38.2%fib), any close above will push the pair towards 2.1494( July 17th high).

• Immediate support is seen at 2.1159(50%fib) and break below could take the pair towards 2.0966(61.8%fib).

 Recommendation: Good to sell around 2.1330, with stop loss of 2.1450 and target price of 2.1250