• 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
