• GBP/NZD initially dipped but recovered some ground as investors digested RBNZ rate cut decision and UK inflation data.
• The Reserve Bank of New Zealand lowered its benchmark rate by 50 basis points to 3.75% on Wednesday, signaling potential future cuts to stimulate the economy as inflation moderates.
• UK inflation rose faster than expected, reaching a 10-month high of 3.0% in January, with further increases likely in the near future.
• The Office for National Statistics said its consumer price index rose at an annual rate of 3% in January, above forecasts for a rise of 2.8%.
• Immediate resistance is located at 2.2207 (38.2% fib), any close above will push the pair towards 2.2297(23rd Dec high).
• Strong support is seen at 2.2038 (50% fib) and break below could take the pair towards 2.1874 (61.8% fib).
Recommendation: Good to sell on around 2.2080 with stop loss of 2.2150 and target price of 2.1950
