FxWirePro: GBP/NZD recovers after early dip following U.S. inflation data

• GBP/ NZD initially dipped on Friday as but recovered ground as market absorbed  release of U.S. PCE inflation data.

• The U.S. Commerce Department reported that the Personal Consumption Expenditures (PCE) Price Index rose 0.2% in July, matching economists’ expectations and down from an unrevised 0.3% increase in June.

• In the 12 months through July, the U.S. Personal Consumption Expenditures (PCE) Price Index rose 2.6%, unchanged from June. Excluding the volatile food and energy components, the core PCE Price Index increased 0.3% month-on-month, matching June’s gain..

• Technical signals show the pair could gain more ground in the short-term as RSI is at 58,while moving averages and MACD are trending higher.

• Immediate resistance is located at 2.2985(Daily high), any close above will push the pair towards 2.3160 (23.6%fib).

• Immediate support is seen at 2.2855(38.2%fib) and break below could take the pair towards 2.2822 (SMA 20).

Recommendation: Good to buy around 2.2900 with stop loss of 2.2810  and target price of 2.2980