• GBP /NZD strengthened on Wednesday as the pair resumed rally after brief wobble in the wake of unexpectedly strong U.S. CPI readings.
•The CPI release showed annual inflation at 8.3% versus the consensus forecast of 8.1%, initially triggering a retreat from early U.S. highs.
•The pairs rise above the 38.2%fib has reinforced the growing bullish strength, putting focus on resistance at 1.9649.
• Immediate resistance is located at 1.9554(Higher BB), any close above will push the pair towards 1.9649 (23.6% fib).
• Immediate support is seen at 1.9404 (38.2%fib) and break below could take the pair towards 1.9332 (14DMA).
Recommendation: Good to buy on dips around 1.9450, with stop loss of 1.9350 and target price of 1.9600.
