FxWirePro:GBP/NZD recovers ground after early dip, bias bullish

• GBP/NZD initially dipped on Wednesday but recovered most of its losses as investors digested UK inflation data and awaited the Bank of England’s rate decision.

• British inflation fell much more sharply than forecast in November to 3.2%, its lowest since March, from 3.6% in October, official data showed on Wednesday,  

• Core consumer price inflation, which excludes volatile items such as food, alcohol, energy and tobacco, slowed to 3.2% instead of remaining at 3.4% as forecast.

•  Market participants have fully priced in a Bank of England rate cut on Thursday, which would lower the Bank Rate to 3.75% by year-end.  

• Immediate resistance is located at 2.3269(38.2%fib), any close above will push the pair towards 2.3362(Higher BB).

• Immediate support is seen at 2.3149(SMA 20) and break below could take the pair towards 2.3072(50%fib).

 Recommendation: Good to buy around 2.3160 with stop loss of 2.3120 and target price of 2.3220