• GBP/NZD dipped on Wednesday after in-line inflation UK reading reinforced expectations that the Bank of England will keep interest rates unchanged at its September meeting..
• UK annual inflation rose to 2.9% in July from 2.6% in June, driven partly by a 13% increase in household energy price caps.
•Economists expected inflation to rise to 2.9%, above the Bank of England’s 2.8% forecast, with inflation seen peaking at 3.2% later this year.
• Markets are pricing in at least one rate hike this year, while most Reuters-polled economists expect rates to remain at 3.75%.
• Immediate resistance is located at 2.2975(38.2%fib), any close above will push the pair towards 2.3088(SMA20).
• Immediate support is seen at 2.2816(Lower BB) and break below could take the pair towards 2.2749(38.2%fib).
Recommendation: Good to sell around 2.2980 , with stop loss of 2.3080 and target price of 2.2900
