FxWirePro: GBP/NZD outlook weaker on renewed downside pressure

• GBP/NZD dipped on Thursday as demand for risk sensitive kiwi dollar increased  after releases of US CPI data.

•  U.S. consumer prices rose in August at the fastest pace in seven months, driven by higher housing and food costs, but a sharp rise in jobless claims kept the Federal Reserve on course to cut rates next Wednesday.

• The CPI rose 0.4% in August, the largest increase since January, following a 0.2% gain in July, the Labor Department’s Bureau of Labor Statistics reported.

• In the 12 months to August, the CPI rose 2.9%, the sharpest increase since January, following a 2.7% gain in July.

• Technical signals are bearish as RSI is at 43, daily momentum studies  5, 9 and 10 DMAs are trending south. 

• Immediate resistance is located at 2.2914 (SMA20 ), any close above will push the pair towards 2.3008 (38.2%fib).

• Strong support is seen at 2.2709 (Lower BB) and break below could take the pair towards 2.2630(Lower BB).

Recommendation: Good to sell around 2.2730  with stop loss of 2.2800  and target price of 2.2650