• GBP /NZD initially gained on Monday but gave up some ground as investors waited for British inflation data and a Bank of England decision later in the week.
• The latest British inflation data is due out on Wednesday. Economists expect headline CPI to have cooled slightly to 8.5% year-on-year, from 8.7% in April.
• GBP/NZD has seen a 2.0550- 2.0687 range on Monday, chart points to an overshoot above 23.6%fib resistence.
• Technical signals are bullish as RSI is at 57,while moving averages and MACD are trending higher
• Immediate resistance is located at 2.0687 (23.6%fib), any close above will push the pair towards 2.0733 (Higher BB).
• Immediate support is seen at 2.0530 (14DMA) and break below could take the pair towards 2.0505 (38.2%fib).
Recommendation: Good to buy around 2.0620, with stop loss of 2.0530 and target price of 2.0700
