FxWirePro: GBP/NZD gains some upside momentum but still bearish

• GBP/NZD  initially dipped but recovered some ground as investors digested U.S. CPI data and UK GDP data..

• British GDP grew 0.4% in July, far exceeding economists' expectations for no growth, according to figures from the Office for National Statistics.

 • U.S. consumer prices climbed 0.4% in August following a 0.1% increase in July, according to Labor Department data. Core CPI rose 2.4% annually after advancing 2.5% in July.

•  Oil prices fell but remained above $100 a barrel, while diesel prices were at record highs, suggesting inflation was set to remain elevated and broaden.

•Meanwhile, markets see little chance of a Bank of England rate hike next week, although at least two increases are priced in by March, with a third carrying a 40% probability. 

• Immediate resistance is located at 2.3333(Higher BB), any close above will push the pair towards 2.3440(61.8%fib).

• Immediate support is seen at 2.3128 (38.2%fib) and break below could take the pair towards 2.2300 (SMA 20).

Recommendation: Good to sell around 2.3320, with stop loss of 2.3440 and target price of 2.3100