FxWirePro : GBP/NZD caught in narrow range, bias neutral

• GBP/NZD traded flat on Thursday  as investors turned cautious over inflation risks and the Bank of England's interest rate outlook.

• BoE policymaker Megan Greene said Wednesday that inflation risks in Britain are likely to be stronger than the central bank’s projections, warranting a cautious stance on further interest rate cuts..

• The UK posted the highest inflation rate among G7 economies at 3.8% in August, with the Bank of England expecting it to peak at 4% in September before gradually returning to its 2% target by spring 2027.

•Investor focus is now on Friday’s Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation metric, which could impact expectations for upcoming interest rate moves.

• Technicals are favouring bearish bullishas RSI is at 65 and the pair is trading above  9,11& 14-DMAs.

• Immediate resistance is located at 2.3153(23.6% fib), any close above will push the pair towards 2.13189 (Higher BB)

• Strong support is seen at 2.3079(Sep 25th low)and break below could take the pair towards 2.3000 (Psychological level).

Recommendation: Be on sidelines