FxWirePro: GBP/NZD edged higher , retains bid tone

• GBP/NZD edged higher  on Monday as traders increased their expectations for tighter monetary policy from the BoE.

•BoE Governor Andrew Bailey said on Friday that persistently high energy prices would make it more difficult for the central bank to keep interest rates unchanged.

• BoE Deputy Governor Dave Ramsden said on Monday that a further build-up in inflationary pressures could strengthen the case for raising interest rates.

• Money markets are pricing in an 85% chance of a 25-basis-point rate hike at the November meeting, which would take the policy rate to 4%, with four additional hikes priced in by the middle of next year.

•Meanwhile, oil prices climbed more than 3% after the US rejected ​an Iran peace plan, reinforcing inflation fears and higher interest rates worldwide. 

• Immediate resistance is located at 2.3518(23.6%fib), any close above will push the pair towards 2.3570(Higher BB).

• Immediate support is seen at 2.3224(38.2%fib) and break below could take the pair towards 2.3009(50%fib).

Recommendation: Good to buy  around 2.3300, with stop loss of 2.3200 and target price of 2.3500