• GBP/NZD initially declined on Wednesday but recovered some ground as markets narrowed the odds of more aggressive rate hikes ahead as central banks globally rushed to catch up with inflation.
• The inflation data bolstered bets that the BoE will opt to raise interest rates by 50 basis points (bps) next month, but moves were limited because a 50 bps increase had been priced in.
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 40.
•Immediate resistance is located at 1.9275(5DMA ) , any close above will push the pair towards 1.9341 (38.2%fib).
• Immediate support is seen at 1.9208(Lower BB ) and break below could take the pair towards 1.9133(23.6%fib ).
Recommendation: Good to around 1.9230, with stop loss of 1.9310 and target price of 1.9130.
