FxWirePro: GBP /NZD dips on softer-than-expected UK inflation data

• GBP/NZD dipped on Wednesday as investors digested the latest UK inflation data.

• Annual consumer price inflation held steady at 3.8% year-on-year, unchanged from July and August, below the market forecast of 4.0%.

• The softer-than-expected CPI has prompted a dovish reassessment of Bank of England policy expectations.

• The data suggest that, despite broader economic stability, inflation pressures are easing, giving the BoE room to potentially ease monetary policy.

•Market pricing now shows a 75% probability of a BoE rate cut by December 18, sharply higher than the 45% chance seen before the data

• Immediate resistance is located at 2.3308(Oct 22nd high), any close above will push the pair towards 2.3516(23.6%fib).

• Immediate support is seen at 2.3251(SMA20) and break below could take the pair towards 2.3137(38.2%fib).

Recommendation: Good to sell around 2.3300, with stop loss of 2.3380, and target price of 2.3180