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FxWirePro: GBP/NZD extends drop, faces 23.6%fib support

• GBP/NZD dipped on Friday as strengthening economic prospects alongside a more hawkish approach by RBNZ boosted kiwi dollar across the board.

• RBNZ deputy governor Christian Hawkesby kept to the hawkish theme, saying stubborn inflation meant there was little room for error.

• GBP/NZD remains vulnerable, only a break and daily close above 5DMA will shift bias to the upside.

• Immediate resistance is located at 2.0520(38.2% fib), any close above will push the pair towards 2.0604 (5DMA).

• Strong support is seen at 2.0417 (23.6% fib) and break below could take the pair towards 2.0309 (Oct 10th low).

Recommendation: Good to sell on  around 2.0460 with stop loss of 2.0550   and target price of 2.0350

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