• GBP/NZD strengthened on Thursday as kiwi dollar eased on dovish expectation from RBNZ.
• Investors are betting on a 50bps cut to the RBNZ's 4.25% cash rate in February, citing ongoing economic weakness.
•On the data front, New Zealand's annual food inflation rose to 1.5% in December, the highest level in ten months, up from 1.3% in November.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 2.1900 level.
• Immediate resistance is located at 2.1875(38.2%fib), any close above will push the pair towards 2.2034(23.6%fib).
• Immediate support is seen at 2.1747 (50%fib) and break below could take the pair towards 2.1619(61.8%fib).
Recommendation: Good to buy around 2.1830, with stop loss of 2.1750 and target price of 2.1900
