• GBP/NZD firmed on Wednesday following the U.S. inflation release but struggled to sustain gains above the 1.35 level.
• U.S. consumer inflation remained relatively mild in July, with headline CPI rising 0.1% month-on-month and annual inflation easing to 3.4% from 3.5% in June.
• Core CPI increased 0.2% on the month and 2.5% year-on-year, suggesting that underlying price pressures remain contained but have not completely disappeared.
•Despite the softer inflation picture, the U.S. economy is not completely out of the woods, particularly with energy prices and other inflationary pressures posing potential risks in the coming months.
•Investors are waiting for the UK's GDP data on Thursday, which is expected to show economic growth stalled on a month-over-month basis in June following a 0.1% growth in May.
• Immediate resistance is located at 2.3127(Higher BB), any close above will push the pair towards 2.3200 (61.8%fib).
• Immediate support is seen at 2.2976(38.2%fib) and break below could take the pair towards 2.2806(Lower BB).
Recommendation: Good to sell around 2.3050 , with stop loss of 2.3150 and target price of 2.2900
