FxWirePro: GBP/NZD retreats slightly but trend is still bullish

• GBP/NZD retreated slightly on Wednesday  as weaker-than-expected UK labor market data pressured the pound.

•  Official data on Wednesday showed UK inflation eased last month for the first time since May, providing relief to the government ahead of next week’s budget and increasing the likelihood of a Bank of England rate cut in December.

• Consumer price inflation eased to 3.6% in October from 3.8% in September, marking its joint-highest point since January 2024, according to the ONS.

• The BoE paused its quarterly rate cuts earlier this month, while Finance Minister Rachel Reeves said she plans to avoid tax or spending measures that could fuel inflation in the November 26 budget.

Markets have increased the probability of a 25-basis-point BoE rate cut in December to 86%, compared with 80% on Tuesday.

• Immediate resistance is located at 2.3473(23.6% fib), any close above will push the pair towards 2.3550(Higher BB).

• Immediate support is seen at 2.3202(38.2%fib) and break below could take the pair towards 2.3086(Nov 14th low).

•    Recommendation: Good to buy around 2.3200, with stop loss of 2.3120 and target price of 2.3200