FxWirePro: GBP/NZD advances as kiwi weakens ahead of RBNZ decision

• GBP/NZD advanced on Tuesday  as kiwi dollar weakened ahead of monetary policy decision from the RBNZ   .

• The Reserve Bank of New Zealand is all but certain to leave its official cash rate unchanged at 2.25 percent when it meets on Wednesday.

•A Reuters poll of 29 economists conducted between May 18 and 22 found that 28 expected the RBNZ to hold on May 27.

• New Zealand inflation rose 3.1% last quarter, again breaching the top of the RBNZ's 1-3% target band; oil above $100 a barrel for most of the past two and a half months is seen as a key upside risk to expectations.

• From the May meeting, the RBNZ will publish individual committee member votes when consensus is not reached, a new transparency measure aimed at improving public understanding of its decisions.

• The RBNZ is set to raise rates 50 basis points in total to 2.75% by end-Q4, poll medians showed, with a final rise to 3.00% ​by end-Q1 2027.

• Immediate resistance is located at 2.3068(38.2%fib), any close above will push the pair towards 2.3110(Higher BB).

• Immediate support is seen at 2.2921(50%fib) and break below could take the pair towards 2.2890(SMA 20).

Recommendation: Good to buy  around 2.3000  with stop loss of 2.2960 and target price of 2.3080