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FxWirePro: GBP/NZD consolidates as hot UK inflation data dampens August rate-cut bets

• GBP/NZD steadied   around 2.1430 on Wednesday  after above-forecast UK inflation data reduced betting on a August BoE rate cut.

• The British consumer prices data revealed that inflation remained steady at 2%, which was unexpected as forecasts had suggested a slight decrease.

• This unexpected stability in inflation adds to the uncertainty surrounding the timing of the Bank of England (BoE) starting its easing cycle.

• From a technical viewpoint, the moving averages are pointing upwards, while the RSI  is strongly bullish at 79.

•   Immediate resistance is located at 2.1489(23.6% fib), any close above will push the pair towards 2.1540 (Aug 23rd high).

• Strong support is seen at 2.1329 (38.2% fib ) and break below could take the pair towards 2.1183 (50% fib).

Recommendation: Good to buy around 2.1400, with stop loss of 2.1300 and target price of 2.1480

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