• GBP/NZD strengthened on Wednesday as above forecast UK inflation data supported sterling .
• Data showed British annual consumer price inflation held at an 18-month low of 6.7% in September, while the core inflation fell less than expected, raising fears of another BoE rate hike.
• GBP/NZD is approaching resistance at 38.2% fib, break above will give further momentum to bulls, opening the way for a run towards 2.0800 level.
• From a technical viewpoint, the moving averages are pointing upwards, while the RSI is strongly bullish at 55.
• Immediate resistance is located at 2.0763 (38.2% fib), any close above will push the pair towards 2.0878 (23.6% fib).
• Strong support is seen at 2.0673 (50% fib) and break below could take the pair towards 2.0578 (61.8% fib).
Recommendation: Good to buy around 2.0680, with stop loss of 2.0520 and target price of 2.0760
