• GBP/ NZD initially gained on Wednesday but rally fizzled as markets geared up for Thursday's U.S. CPI data , which may set the tone for Fed policy in 2023.
• Choppy overnight action leads to a retreat towards 1.9079, GBP/ NZD may near 1.8945 if support breaks at 1.9039.
• The pound remains soft against kiwi dollar as traders weigh the lingering UK inflation, recession uncertainties to UK economy.
• Technical are bearish RSI is at 43 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.9095 ( 14DMA), any close above will push the pair towards 1.9139(38.2% fib).
• Immediate support is seen at 1.9039 (Daily low) and break below could take the pair towards 1.8945 (23.6% fib).
Recommendation: Good to sell around 1.9080, with stop loss of 1.9180 and target price of 1.9000
