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FxWirePro GBP/NZD drops after Bank of England cuts rates, more downside expected

• GBP/NZD declined  sharply on Thursday  as pound was negatively impacted after Bank of England cut interest rates from a 16-year high.

• The Bank of England (BoE) reduced interest rates by a quarter point to 5% after a narrow vote in favor from policymakers, marking the first cut from the central bank since 2020.

• The pound fell to 2-week low, and was last down 0.88% against the kiwi dollar.

• GBP/NZD focus is on 2.1400(50%fib) support, a break below will accelerate losses towards 2.1300 level. 

• Immediate resistance is located at 2.1572 (38.2%fib), any close above will push the pair towards 2.1786 (23.6%fib).

• Strong support is seen at 2.1400(50%fib) and break below could take the pair towards 2.1200(61.8%fib).

Recommendation: Good to sell on  around 2.1450 , with stop loss of 2.1650 and target price of 2.1350
 

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