• GBP/NZD steadied on Wednesday markets reacted to mixed signals from the UK inflation report.
• Britain saw a sharper-than-expected rise in inflation in April, leading investors to speculate that the Bank of England may slow its already cautious pace of interest rate cuts..
• The UK's annual inflation rate jumped to 3.5% in April, its highest level since January 2024. The sharp rise from 2.6% in March marked the biggest monthly increase since 2022, when inflation was soaring above 10%.
• Separately, data showed UK house prices increased at their fastest annual pace since late 2022, rising sharply in the 12 months to March.
• Immediate resistance is located at 2.2708(Higher BB) any close above will push the pair towards 2.2734(38.2% fib).
• Strong support is seen at 2.2560 (50% fib) and break below could take the pair towards 2394(61.8% fib)
Recommendation: Good to buy around 2.2600 , with stop loss of 2.0540 and target price of 2.2750
