FxWirePro: GBP/NZD gaining momentum for a move towards 2.3500 level

• GBP/NZD rose on Friday as investors absorbed the Bank of England’s rate decision and turned their attention to the upcoming government budget later this month.

• The BoE kept rates unchanged, falling short of the most dovish expectations, as a minority of analysts had anticipated a 25-basis-point cut.

• Markets now anticipate that the British government will announce a major fiscal tightening package in its Autumn Statement, potentially giving the BoE greater scope to ease policy next year.

•Traders are pricing a 60% chance of a 25 bps BoE cut and 58 bps of easing by end-2026. British 2-year yields , more sensitive to expectations for policy rates, were up 1.5 bps at 4.11% on Friday, after.

• Immediate resistance is located at 2.3470(23.6%fib), any close above will push the pair towards 2.3546(Higher BB).

• Immediate support is seen at 2.3253(38.2%fib) and break below could take the pair towards 2.3182 (SMA20).

Recommendation: Good to buy around 2.3350 with stop loss of 2.3290  and target price of 2.3500