FxWirePro: GBP/NZD bulls undeterred, eyes 38.2% fib level

• GBP/NZD extended its gains on Friday  as the sterling continued to strengthen on BOE latest policy decision .

• The BoE cut rates on Thursday, but four of its nine policymakers voted to keep borrowing costs on hold, leading to the Monetary Policy Committee holding two rate votes for the first time in its history.

• Following Thursday’s Bank of England announcement, investors scaled back expectations for near-term rate cuts, with markets now fully pricing the next reduction for the February meeting, compared with December previously.

• Traders are placing a 93% chance of no change to the bank rate at the BoE's next meeting in September.

• Technical are bullish, daily RSI is negative at 56, daily momentum studies  9 and 10 DMAs are trending up. 

• Immediate resistance is located at 2.647 (38.2%fib ), any close above will push the pair towards 2.6787  (Higher BB).

• Strong support is seen at 2.2497 (SMA 20) and break below could take the pair towards 2.2241 (50%fib)

Recommendation: Good to buy around 2.2570 with stop loss of 2.2450 and target price of2.2680