FxWirePro: GBPNZD gains as interest rate differentials favor GBP

• GBP/ NZD rose sharply on Thursday as narrowing interest rate differentials between the BoE and the RBNZ  continue to favor GBP in the short term.

• Investors are currently pricing in a steady monetary policy stance from the Bank of England, expecting it to keep interest rates unchanged amid moderate inflation and a cautious economic outlook.

• At the same time, market participants anticipate that the Reserve Bank of New Zealand (RBNZ) may move toward cutting rates.

•  Immediate resistance is located at 2.2721(38.2%fib), any close above will push the pair towards 2.2770(Higher BB).

•  Support is seen at 2.2644(50%fib) and break below could take the pair towards 2.2558 (61.8%fib)

• Recommendation: Good to buy around 2.2700, with stop loss of 2.2620 and target price of 2.2800