• GBP/NZD firmed on Tuesday as UK PMI results exceeded expectations, strengthening the pound.
• The S&P Global Purchasing Managers' Index for December increased to 52.1 from 51.2 in November.
• The overall PMI and the services sector index both reached two-month highs, while the manufacturing gauge recorded its strongest reading in 15 months.
• UK economic data reinforced market expectations for the Bank of England to keep interest rates steady, leaving the likelihood of a rate cut unchanged
• Markets are pricing around 60 bps of BoE rate cuts by the end of next year and about a 90% chance of a cut on Thursday..
• Immediate resistance is located at 2.3355(Oct 8th high), any close above will push the pair towards 2.3427(Higher BB).
• Immediate support is seen at 2.3129(38.2%fib) and break below could take the pair towards 2.2972(Dec 9th low).
Recommendation: Good to buy around 2.3200 with stop loss of 2.3120and target price of 2.3280
