• GBP/ NZD strengthened on Wednesday but gains were limited as traders braced Federal Reserve meeting.
• On the data front ,UK inflation slowed in February, consumer prices rose by 3.4% in annual terms after a 4.0% increase in January, the weakest rate of inflation since Sep 2021.
• Core inflation, which excludes energy, food and tobacco prices, also slowed, dropping to 4.5% from 5.1% in January. The Reuters poll had pointed to a reading of 4.6%.
• Technical signals are slightly bullish as RSI is at 69 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 2.1086 ( 23.6% fib), any close above will push the pair towards 2.1162 (Higher BB).
• Immediate support is seen at 2.1000(Daily low) and break below could take the pair towards 2.0893 (38.2% fib).
Recommendation: Good to buy around 2.1030 , with stop loss of 2.0800 and target price of 2.1150
