• GBP/ NZD rose on Monday as sterling gained upward traction ahead of a key Bank of England (BoE) rate decision and inflation data due this week.
• UK inflation data on Wednesday is expected to show some easing, while money markets are pricing in a 50% chance of no interest rate hike by the BoE on Thursday.
• Today’s rise has passed through the 38.2% fibonacci retrace point at 1.9505 and now eyes at 23.6%fib resistance.
• Immediate resistance is located at 1.9662(23.6%fib), any close above will push the pair towards 1.9720(Higher BB).
• Support is seen at 1.9505(38.2%fib) and break below could take the pair towards 1.9438 (14DMA).
Recommendation: Good to buy around 1. 9610, with stop loss of 1. 9490 and target price of 1.9680
