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• GBP/NZD traded in narrow range on Tuesday as traders prepared for UK inflation data on Wednesday.
• On Wednesday, data is likely to indicate that headline inflation in the United Kingdom was 4.4% year on year in November, down from 4.6% the previous month.
• GBP/NZD remains vulnerable, only a break and daily close above 9DMA will shift bias to the upside.
• Immediate resistance is located at 2.0370(38.2% fib), any close above will push the pair towards 2.0415 (9DMA).
• Strong support is seen at 2.0270 (23.6% fib) and break below could take the pair towards 2.0226 (May 25th low).
Recommendation: Good to sell on around 2.0300, with stop loss of 2.0400 and target price of 2.0220
