- GBP/NZD is extending breakout above major trendline resistance and triangle top at 1.8050.
- The pair is consolidating previous session's spike in GBP post BoE rate decision and is trading a narrow range in the Asian session.
- BoE left policy unchanged with a vote 7-2 to keep interest rates at record low level of 0.25%, as widely expected.
- The statement and the minutes were perceived as hawkish and comments from Governor Mark Carney that followed boosted the pound further.
- Carney reaffirmed what the BoE said in the statement and added that the possibility of a rate hike has risen.
- The major finds immediate resistance on the upside at 1.8737 (23.6% Fib retrace of 2.5318 to 1.6704 fall).
- Technical studies are bullish. We see weakness on break below weekly 5-SMA at 1.8026.
Support levels - 1.85, 1.8334 (5-DMA), 1.8026 (weekly 5-SMA)
Resistance levels - 1.8542 (1M 20-SMA), 1.8737 ((23.6% Fib retrace of 2.5318 to 1.6704 fall), 1.8820 (Upper BB), 1.9165 (100-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Triangle-Breakout-in-GBP-NZD-good-to-go-long-on-dips-876627) has hit all targets.
Recommendation: Good to go long on breakout above 1.8542, SL: 1.8075, TP: 1.8615/ 1.8735/ 1.9165/ 2.0
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 137.58 (Bullish), while Hourly NZD Spot Index was at 24.3043 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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