FxWirePro: GBP/NZD little changed as markets brace for UK CPI report

• GBP/NZD was little changed on Tuesday as  investors awaited British inflation data on Wednesday which could provide additional clues about the Bank of England policy path.

• Lower-than-forecast inflation would reinforce the position of BoE doves calling for rate cuts in December and early 2025.

• Markets expect headline CPI to soften to 3.6% YoY from 3.8%, with core inflation likely slipping to 3.4% from 3.5%.

• Markets may view the data as paving the way for BoE policy easing in December or January, especially after last week’s weak GDP and labour-market figures..

• Immediate resistance is located at 2.3267(38.2%fib), any close above will push the pair towards 2.3497(23.6%fib).

• Immediate support is seen at 2.3149 (SMA 20) and break below could take the pair towards 1.3079(50%fib).

Recommendation: Good to buy around 2.3200  with stop loss of 2.3150 and target price of 2.3400