• GBP/NZD initially dipped but recovered ground on Thursday after data showed U.S. inflation picked up in July, data did little to shift expectations for Fed policy.
• The steady Fed vs more-hawkish BoE outlook is likely to keep GBP/NZD bid amid diverging UK-U.S.rate expectations.
• The pair hit daily high at 2.1045, it was last up 0.03% at 2.1020 at GMT 18.19.
• From a technical viewpoint, the moving averages are pointing upwards, while the RSI is trnding higher at 60.
• Immediate resistance is located at 2.1066 (23.6 % fib), any close above will push the pair towards 2.1116(Higher BB).
• Strong support is seen at 2.0981 (5DMA ) and break below could take the pair towards 2.0871 (38.2 % fib).
Recommendation: Good to buy around 2.1000, with stop loss of 2.0920 and target price of 2.1100
