• GBP/NZD reached its highest level in two weeks on Monday as kiwi dollar weakened ahead of upcoming Reserve Bank of New Zealand’s rate decision.
• Economists predict the RBNZ will keep rates steady on July 9, and see only one more 25 bp cut this year versus two in May.
• After an unusually aggressive rate‑hiking campaign to rein in inflation, the bank has trimmed 225 bps off borrowing costs since August.
• The central bank is expected to hold steady for now, ahead of second-quarter inflation figures due on July 21.
• Immediate resistance is located at 2.2741(38.2% fib), any close above will push the pair towards 2.2773 (Higher BB).
• Strong support is seen at 2.2530 (50% fib) and break below could take the pair towards 2.2384(Jul 4th low)
Recommendation: Good to buy around 2.2680 , with stop loss of 2.0600 and target price of 2.2750
