• GBP/NZD recovered some ground on Wednesday as investors reassessed the Reserve Bank's policy outlook amid rising global inflation risks.
• The recent surge in oil prices, driven by the ongoing conflict in the Middle East, has raised concerns that inflationary pressures could strengthen.
• The Iran conflict remains the key wild card for pair. With inflation already above target, any oil shock could shift the focus from when the Bank of England cuts rates to whether it cuts at all.
• The Bank of England meets next week, with markets now expecting a wait-and-see approach instead of the previously anticipated March rate cut.
• Immediate resistance is located at 2.2716 (38.2%fib), any close above will push the pair towards 2.2825(Higher BB).
• Immediate support is seen at 2.2596(SMA20) and break below could take the pair towards 2.2424(23.6%fib).
Recommendation: Good to sell around 2.2700 with stop loss of 2.2780 and target price of 2.2660
