• GBP/NZD edged higher but gains were limited as traders looked ahead to key UK inflation figures due on Wednesday.
• Markets are closely watching the UK consumer inflation report due Wednesday, with expectations pointing to a further pickup in price pressures.
• Analysts anticipate that both headline and core Consumer Price Index (CPI) figures will show continued momentum in June, driven by rising service costs and resilient consumer demand.
•Bank of England policymaker Catherine Mann stated on Tuesday that inflationary pressures remain a concern, despite recent moderation in wage growth. She emphasized the importance of using interest rates to bring inflation under control.
• Catherine Mann, an external member of the Bank of England’s Monetary Policy Committee, voted to keep interest rates unchanged at the last two meetings—even as the majority of her colleagues supported a cut at one of them.
•Financial markets are betting on the BoE cutting rates by a quarter of a percentage point to 4% when it announces its next move on August 7, and see rates most likely falling to 3.75% by the end of 2025..
• Immediate resistance is located at 2.2550(SMA 20), any close above will push the pair towards 2.2677(50%fib)
• Support is seen at 2.2461 (38.2%fib) and break below could take the pair towards 2.2391 (Lower BB).
Recommendation: Good to sell around 2.2530 with stop loss of 2.2600 and target price of 2.2450
