•GBP/NZD eased from overbought territory on Thursday as investors assessed a fresh batch of U.S. economic data.
• U.S. inflation increased further in May, breaking above 4.0% for the first time in three years on higher energy prices, and potentially drawing the Federal Reserve closer to raising interest rates..
• A final reading of first-quarter GDP data showed the economy grew by 2.1%, compared to a prior estimate of 1.6%. Meanwhile, jobless claims data showed a higher-than-expected fall in the number of Americans filing for unemployment benefits..
• Traders anticipate the Bank of England will hike borrowing costs by 25 basis points by year-end..
•In politics, Finance Minister Rachel Reeves announced her support for Andy Burnham, who is widely anticipated to become the UK's seventh prime minister in a decade two weeks from now.
• Immediate resistance is located at 2.3381(23.6%fib), any close above will push the pair towards 2.3477(Higher BB)
• Support is seen at 2.3199 (38.2%fib) and break below could take the pair towards 2.3045(50%fib).
Recommendation: Good to buy around 2.3280 with stop loss of 2.3200 and target price of 2.3350
