FxWirePro : GBP/NZD holds steady post-BoE decision

• GBP/NZD pair initially dipped on Thursday but regained ground after the Bank of England delivered a widely expected interest rate cut.

 • The Bank of England (BoE) lowered UK interest rates by 25 basis points on Thursday, marking its fifth cut in a year. However, a near-even split among policymakers   with almost half voting to hold rates  gave the pound a lift.

• The division forced the Monetary Policy Committee to hold two separate votes for the first time in its history.

• Faced with a worsening labor market and an inflation forecast nearly double the BoE’s 2% target, a split MPC saw Governor Andrew Bailey and four colleagues support a rate reduction to 4% from 4.25%.

• Immediate resistance is located at 2.2566(38.2%fib), any close above will push the pair towards 2.2633(Higher BB)

• Support is seen at 2.2493 (SMA 20) and break below could take the pair towards 2.2340 (Lower BB).

Recommendation: Good to buy  around 2.2550, with stop loss of 2.2460 and target price of 2.2620