FxWirePro: GBP/NZD downtrend loses steam but outlook still bearish

• GBP/NZD dipped on Thursday  as investors priced in further interest rate cuts following dovish comments from the Bank of England.

• The Bank of England left interest rates unchanged on Thursday, but the decision came after a surprisingly close 5-4 vote.

• The central bank indicated that it could consider a rate cut in the future if the anticipated sharp decline in inflation over the coming months turns out to be sustainable rather than temporary.

•Despite significantly lowering its forecast for Britain’s economic growth this year and noting a rise in unemployment, the Bank of England kept its benchmark Bank Rate unchanged at 3.75%.

•Governor Andrew Bailey was one of the five MPC members who backed the 'hold' decision. He said his position was likely to change if a forecast fall in inflation to the BoE's 2% target from April looked sustainable.

• Immediate resistance is located at 2.2849(38.2%fib), any close above will push the pair towards 2.975(SMA 20).

• Immediate support is seen at 2.592 (23.6%fib) and break below could take the pair towards 2.2482(Lower BB).

Recommendation: Good to sell  around 2.2800, with stop loss of 2.2880, and target price of 2.2720