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FxWirePro: GBP/NZD downside pressure builds, key support level in focus

• 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

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