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FxWirePro GBP/NZD falls after BoE signals rate cuts, more downside expected

• GBP/NZD declined on Thursday  as pound was negatively impacted after BoE signalled rate cuts.

• The Bank of England maintained current interest rates, but investors were encouraged by signs that more policymakers are leaning toward reducing borrowing costs in the near future.

• BoE decision announced   that its MPC  voted 7-2 to maintain interest rates at 5.25% . Deputy Governor Dave Ramsden joined Swati Dhingra in supporting a reduction to 5%.

• GBP/NZD focus is on 23.6%fib support, a break below will accelerate losses towards 2.0700 level. 

• Immediate resistance is located at 2.0855 (38.2% fib), any close above will push the pair towards 2.0940 (50% fib).

• Strong support is seen at 2.0747(23.6%fib) and break below could take the pair towards 2.0705 (Lower BB).

Recommendation: Good to sell on  around 2.0790 , with stop loss of 2.0900  and target price of 2.0700

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