• GBP/NZD dipped on Tuesady as slowing US inflation knocked the pair from early gains.
• Data showed U.S. consumer prices were unchanged in October as Americans paid less for gasoline, and the annual rise in underlying inflation was the smallest in two years.
• The pair dropped towards 2.0785 . Daily close above 38.2% fib resistance will increase upside potential .
• Technical signals are bullish as RSI is heading up at 54, daily momentum studies 5, 9 and 1 DMAs are trending up.
• Immediate resistance is located at 2.0839 (38.2% fib), any close above will push the pair towards 2.890(Nov 13th high)
• Support is seen at 2.0750 (9DMA) and break below could take the pair towards 2.0712 (50% fib).
Recommendation: Good to buy around 2.0720, with stop loss of 2.0660 and target price of 2.0870
