• GBP/NZD edged lower on Monday as the pound struggled against the kiwi dollar amid ongoing uncertainty surrounding UK fiscal policy.
• Attention this week is likely to be on British inflation data on Wednesday.Consumer prices are expected to have risen 2.6% annually in December, in line with November.
•Futures markets are pricing in around 16 basis points of easing at the BoE's February meeting, implying around a 65% chance of a quarter-point rate cut.
• Immediate resistance is located at 2.1994 (38.2%fib), any close above will push the pair towards 2.2064 (Jan 1 10th high).
• Strong support is seen at 2.2176(38.2%fib) and break below could take the pair towards 2.1596( (23.6%fib)
Recommendation: Good to sell around 2.1950 with stop loss of 2.2050 and target price of 2.1800