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FxWirePro: GBP /NZD scales to two –month peak on above forecast UK CPI,room for further gains

• GBP /NZD rose on Wednesday as pound was boosted by above forecast UK inflation data.

• Data showed Britain's annual rate of CPI accelerated to 4% in December from 3.9% in November which was its lowest in more than two years. 

• Hotter than expected UK CPI is blow for doves advocating spring BoE rate cut.

• The pairs rise above the 38.2% fib has reinforced the growing bullish strength, putting focus on 2.0900  level.

• Immediate resistance is located at 2.0782 (Daily high), any close above will push the pair towards 2.0872 (23.6% fib).

• Immediate support is seen at 2.0686(38.2% fib) and break below could take the pair towards 2.0570 (50%fib).

Recommendation: Good to buy on dips around 2.0760, with stop loss of 2.0680  and target price of 2.0900
 

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