FxWirePro : GBP/NZD slips but holds above key support zone

• GBP/NZD slipped lower on Wednesday after  UK data showed consumer inflation barely moved in May, undermining the case for prompt rate cuts.

• The Office for National Statistics reported on Wednesday that UK consumer prices rose 3.4% year-on-year in May, matching forecasts and slightly down from 3.5% in April.

• All eyes are on the Bank of England’s meeting this Thursday, with markets anticipating a rate hold following signs of easing inflation in May.

• The BoE lowered rates by a quarter point to 4.25% on May 8 in a three-way split vote, with two Monetary Policy Committee members favouring a bigger cut and two favouring a hold.

•The central bank said in May it expects inflation to peak at about 3.7% later this year. Some economists think April might prove to be the high point, although the conflict in the Middle East poses a risk of stronger price pressure.

• Immediate resistance is located at 2.2351(June 18th high), any close above will push the pair towards 2.2501 (50%fib)

• Support is seen at 2.2222 (61.8%fib) and break below could take the pair towards 2.2170(Lower BB).

Recommendation: Good to buy  around 2.2200 with stop loss of 2.2050  and target price of 2.2300