• GBP/ NZD strengthened on Wednesday as traders focused on sticky inflation and the outlook for Bank of England monetary policy.
• At 14:26 GMT, the pound was up against kiwi dollar at 2.0549, the pair hit daily high at 2.0556
• A daily close above 5DMA will further improve the technical outlook, and open the possibility of a rally towards 2.0600 level.
• Immediate resistance is located at 2.0526 (5DMA), any close above will push the pair towards 2.0633 (23.6%fib).
• Support is seen at 2.0375 (38.2%fib) and break below could take the pair towards 2.0221 (May 25th low).
Recommendation: Good to buy around 2.0530, with stop loss of 2.0450 and target price of 2.0600
