FxWirePro: GBP/NZD rebounds strongly from initially decline, critical resistance lies ahead

• GBP/NZD rebounded strongly from initial decline   on Wednesday  as traders digested RBNZ and UK CPI surprise.

•British consumer prices rose by 2.3% in annual terms in April, slowing from a 3.2% increase in March

• The Reserve Bank of New Zealand left its benchmark cash rate at 5.5% as expected, but lifted its forecasts for peak interest rates at its latest monetary policy meeting.

• GBP/NZD    fell deeper into negative territory earlier in the day but rebounded after finding a foothold at 61.8% fibo support

• From a technical viewpoint, the moving averages are pointing upwards, while the RSI  is strongly bullish at 51.
.
• Immediate resistance is located at 2.0915 (38.2%fib), any close above will push the pair towards 2.1000 (Psychological level).

• Strong support is seen at 2.0795(50%fib) and break below could take the pair towards 2.0737 (May 10th low)

Recommendation: Good to buy around 2.0870 with stop loss of 2.0750  and target price of 2.0960