FxWirePro: GBP /NZD drops below 2.2900 level, heads deeper into bear territory

• GBP/NZD  drifted lower on Wednesday as rising expectations for a rate cut from the Bank of England by year-end pushed the currency lower.

• As inflation drifts toward the BoE’s 2% target and underlying price pressures ease, markets are starting to bet on an upcoming policy pivot.

• Investors brace for potential tax rises and spending cuts in the upcoming UK budget that may exacerbate the economic slowdown.

• The UK’s fiscal watchdog is expected to significantly downgrade its productivity growth forecast, making it harder for Chancellor Rachel Reeves to meet her fiscal rules at the Nov. 26 budget.

• Immediate resistance is located at 2.3058(50%fib), any close above will push the pair towards 2.3199(SMA 20).

• Immediate support is seen at 2.2866(38.2%fib) and break below could take the pair towards 2.2796(Lower BB).

Recommendation: Good to sell around 2.2900, with stop loss of 2.2980 and target price of 2.2830