• GBP/NZD declined on Wednesday as braced for Bank of England’s policy announcement on Thursday.
• The Bank of England is expected to keep rates on hold at 5.25%, the BoE remains wary of low growth and recession even as UK inflation, core and headline, hold above 6%.
• GBP/NZD dropped swiftly from 2.0975 to test support at 2.0742. Break lower risks run towards 2.0600 level
• Technical signals are bearish as RSI is at 49, daily momentum studies 5,9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.0858 ( 50%fib), any close above will push the pair towards 2.0928 (Oct 26th high)
• Strong support is seen at 2.0742 (38.2%fib ) and break below could take the pair towards 2.0672 (21DMA).
Recommendation: Good to sell around 2.0800 , with stop loss of 2.0950 and target price of 2.0720
