• GBP/NZD initially dipped but recovered some ground on Wednesdays as investors digested UK inflation data.
• British inflation slowed unexpectedly last month and core measures of price growth tracked by the Bank of England fell more sharply.
• The annual inflation rate decreased to 2.5% in December from 2.6% in November, according to the Office for National Statistics, defying economists' expectations for it to stay the same.
• Technical highlight downside risks for GBP/NZD, with momentum studies, 5, 10 and 11 DMAs tracking south.
• Immediate resistance is located at 2.1977 (38.2%fib), any close above will push the pair towards 2.1998 (Jan 13th high).
• Immediate support is seen at 2.1682 (50%fib) and break below could take the pair towards 2.1526(61.8%fib).
Recommendation: Good to sell around 2.1820 with stop loss of 2.1900 and target price of 2.1680
