• GBP/NZD recovered some ground on Monday as sterling was supported after hawkish-leaning remarks by BoE policymaker Catherine Mann earlier in the day
• Bank of England policymaker Catherine Mann cautioned that businesses are still responding to high inflation, signaling that rate-setters cannot ease up in tackling price pressures.
•Mann noted that there’s still “work to do” to bring inflation down to the BOE’s 2% target, highlighting that firms consider inflation when setting prices a year in advance.
• Focus now turns to this week’s UK inflation data, ahead of the budget release and the BOE’s rate decision on December 18.
• Immediate resistance is located at 2.3446(Higher BB), any close above will push the pair towards 2.3482(23.6%fib).
• Immediate support is seen at 2.3158(SMA 20) and break below could take the pair towards 1.3107(38.2%fib).
Recommendation: Good to buy around 2.3240 with stop loss of 2.3150 and target price of 2.3400
