• GBP/NZD rose towards 2.1450 level on Tuesday as GBP continued to gain upward traction ahead of UK inflation data release.
• Upcoming UK CPI and labour market reports will be crucial in determining whether the Bank of England (BoE) will begin cutting rates as early as next month.
• The BoE will need further evidence of slowing services inflation or labour market weakness to gain the confidence needed to vote for a rate cut in August.
• The pound jumped 0.43% at 2.1443 against kiwi dollar , highest level since Sep 7thd 2023.
• Immediate resistance is located at 2.1451 (Daily high ), any close above will push the pair towards 2.1489 (23.6%fib).
• Strong support is seen at 2.1325(38.2%fib) and break below could take the pair towards 2.1230 (July 15th low)
Recommendation: Good to buy around 2.1430, with stop loss of 2.1340 and target price of 2.1500
