• GBP/NZD retreated from daily high on Wednesday as high inflation reading deepened worries that the Bank of England (BoE) may keep interest rates higher for longer.
• Data showed UK inflation defied predictions of a slowdown and held at 8.7% in May, putting yet more pressure on the BoE a day before it is expected to raise interest rates on Thursday.
• Technical are mixed RSI is at 58 bullish , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 2.0724 (Higher BB), any close above will push the pair towards 2.0807(23.6%fib).
• Immediate support is seen at 2.0558 (Daily low) and break below could take the pair towards 2.0522 (38.2%fib)
Recommendation: Be on sidelines
