• GBP/NZD steadied around 2.1430 on Wednesday after above-forecast UK inflation data reduced betting on a August BoE rate cut.
• The British consumer prices data revealed that inflation remained steady at 2%, which was unexpected as forecasts had suggested a slight decrease.
• This unexpected stability in inflation adds to the uncertainty surrounding the timing of the Bank of England (BoE) starting its easing cycle.
• From a technical viewpoint, the moving averages are pointing upwards, while the RSI is strongly bullish at 79.
• Immediate resistance is located at 2.1489(23.6% fib), any close above will push the pair towards 2.1540 (Aug 23rd high).
• Strong support is seen at 2.1329 (38.2% fib ) and break below could take the pair towards 2.1183 (50% fib).
Recommendation: Good to buy around 2.1400, with stop loss of 2.1300 and target price of 2.1480
