GBPNZD is trading sideways on its short-term chart, finding support near the 1.9050 minor psychological mark and resistance at 1.9300. The range bottom seems to be holding, so price could go for another test of the ceiling.

However, the 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside or that support is more likely to break than to hold. Price is also moving below indicators, so these could hold as dynamic resistance on rallies.

A break above the 100 SMA could spur a test of the 200 SMA dynamic resistance, but a bullish move beyond this could clear the way for a climb to the range resistance.

Stochastic has some room to climb before reflecting overbought conditions or exhaustion among buyers, so bullish pressure could stay in play. RSI has more ground to cover before reaching the overbought area, so buyers could be in control for much longer.

A breakout in either direction could spark a rally that’s the same height as the rectangle pattern or 250 pips.

GBPNZD could take its cues from the UK CPI release, as another strong pickup in inflation is eyed. This might prompt the BOE to be more aggressive with its policy tightening, even after they’ve already adjusted asset purchases and hiked interest rates recently.

Headline CPI is expected to jump from 5.5% to 6.0% while the core reading could rise from 4.4% to 5.0%. Stronger than expected results could spark stagflation fears, so the central bank would be keen to keep price pressures in check. Weak readings, on the other hand, could dash hopes of another hike in the next meeting.

Meanwhile, the Kiwi could be pushed around by market sentiment, and worsening geopolitical tensions have been bearish for the higher-yielding commodity currency. Easing conflict between Russia and Ukraine, however, might revive traders’ appetite for riskier holdings.