• GBP/NZD declined sharply on Thursday after the Bank of England held interest rates steady, indicating an end to its rate-hike cycle.
• Bank of England ‘s move followed the U.S. Federal Reserve holding its interest rates steady on Wednesday.
• A close below support at 23.6 % fib support will give further momentum to bears, opening the way for a run towards 2.0600 level.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 5, 10 and 21 DMAs are trending down.
• Immediate resistance is located at 2.0845 (38.2 % fib),any close above will push the pair towards 2.0881 (5DMA).
• Immediate support is seen at 2.0690 (23.6 % fib) and break below could take the pair towards 2.0610 (July 25th low)
Recommendation: Good to sell below 2.0720, with stop loss of 2.0850 and target price of 2.0600
