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During yesterday’s trading session GBP/NZD traded within the range of 1.9369-1.9446 and closed at 1.9396.

At 7:06 GMT today GBP/NZD was adding 0.09% for the day to trade at 1.9418. The pair touched a daily high at 1.9429 at 6:05 GMT.

Fundamental view

The cost of living in the UK probably rose 1.6% in June from a year ago, according to the median analyst’ estimate. The Consumer Price Index (CPI) is the main measure of inflation in the UK for macroeconomic purposes and forms the basis of the inflation target set by the government. Every month about 120 000 samples are made, examining the change in prices of about 650 products. They represent the “market basket” of goods and services to the index itself. This is the percentage change compared to the same month a year earlier.

Core consumer prices probably increased 1.7% in June, compared to the same month a year ago, following a 1.6% gain in the previous month. The core CPI, measures the change in prices of goods and services purchased by consumers, as they are taken out volatile components such as food, energy products, alcohol and tobacco. This is the percentage change compared to the same month a year earlier.

The Office for National Statistics will publish the official figures at 08:30 GMT. Better-than-expected readings will provide support to the sterling.

Technical view

Screenshot from 2014-07-15 10:10:05

According to Binary Tribune’s daily analysis, in case GBP/NZD manages to breach the first resistance level at 1.9437, it will probably continue up to test 1.9481. In case the second key resistance is broken, the pair will probably attempt to advance to 1.9515.

If GBP/NZD manages to breach the first key support at 1.9361, it will probably continue to slide and test 1.9327. With this second key support broken, the movement to the downside will probably continue to 1.9284.

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