• GBP/NZD retreated on Tuesday as the pair rise as focus shift to June UK consumer prices data on Wednesday.
• British inflation has remained much higher than in the United States - and to a lesser degree the euro zone and as a result markets expect more rate rises from the BoE.
• The pair has traded a 250 pip range thus far Tuesday(2.0898-2.0649),It was last trading at
2.0898
• Technical signals are bullish as RSI is at 57, daily momentum studies 5, 9 and 10 DMAs are trending north.
• Immediate resistance is located at 2.0874 (23.6% fib), any close above will push the pair towards 2.0923 (Higher BB).
• Strong support is seen at 2.0719(38.2% fib) and break below could take the pair towards 2.0629(5DMA).
Recommendation: Good to buy on dips around 2.0770 , with stop loss of 2.0700 and target price of 2.0880
