FxWirePro: GBP/NZD retraces initial lift following UK CPI release

• GBP/NZD climbed initially but gave up  some ground as the market absorbed UK inflation data

•  British inflation rose to 3.8% in July, the highest in 18 months, making it the fastest-growing among major rich economies. Britain's services sector inflation rose to 5.0% in July from 4.7% in June.

• The BoE cut interest rates this month by a narrow 5-4 vote and signaled it would slow the already gradual pace of easing due to persistent inflation.

• The BoE expects UK inflation to reach 4% in September and stay above 2% until mid-2027. US inflation held at 2.7% in July, while eurozone inflation is forecast to hover around the ECB’s 2% target.

• Technical are bullish, daily RSI is positive  at 66, daily momentum studies  9 and 10 DMAs are trending up.

• Immediate resistance is located at 2.3218(23.6%fib), any close above will push the pair towards 2.3286(April 9th high)

• Support is seen at 2.3001(38.2%fib) and break below could take the pair towards 2.2824 (50%fib).

Recommendation: Good to buy  around 2.3050 with stop loss of 2.2960  and target price of 2.3300