• GBP/NZD steadied around 2.0700 on Thursdsay as traders digested comments from Bank of England (BoE) policymaker Catherine Mann.
• Mann warned the outlook for British inflation was vulnerable to upside shocks, including from events in the Red Sea, a major trade route between Asia and Europe.
• UK CPI on Feb 13-14 are the next reports that could help markets refine positioning, while central bank rhetoric will also remain in focus.
• Technical signals are bullish as RSI is rising at 53, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 2.0736(38.2%fib), any close above will push the pair towards 2.0831 (Feb 2nd high)
• Strong support is seen at 2.0601(50%fib) and break below could take the pair towards 2.0546 (Jan 17th low).
Recommendation: Good buy around 2.0700, with stop loss of 2.0500 and target price of 2.780
