• GBP/NZD rose on Monday as sterling attracted buyers ahead this week's UK CPI print.
• Data expected on Wednesday is projected to show that the UK's headline rate of inflation dropped significantly to 2.1% in April, down from 3.2% in March.
• A close above 38.2%fib will trigger a new bullish phase with potential for 2.0900
• Technical signals are bullish as RSI is trending up, moving averages 5,9 ,11DMA’s trending north.
• Immediate resistance is located at 2.0850 (38.2%fib), any close above will push the pair towards 2.0890 (May 14th high).
• Immediate support is seen at 2.0770 (50%fib) and break below could take the pair towards 2.0690 (50%fib).
Recommendation: Good to buy around 2.0790, with stop loss of 2.0680 and target price of 2.0880
