• GBP/NZD advanced on Tuesday as kiwi dollar weakened ahead of Reserve Bank of New Zealand (RBNZ) policy decision.
•RBNZ will announce its interest rate decision at 02:00 GMT, Monetary Policy Review, and meeting minutes. Governor Dr. Anna Breman is due to hold a press conference at 03:00 GMT.
• Investors expect the Reserve Bank of New Zealand to resume its tightening cycle on Wednesday by raising the Official Cash Rate 25 basis points to 2.50%, following three straight meetings without a rate change.
• Analysts are divided on how the Reserve Bank of New Zealand will act this time after its previous decision to maintain the cash rate was a finely balanced call.
• Immediate resistance is located at 2.3553(23.6%fib), any close above will push the pair towards 2.3647(Higher BB)
• Support is seen at 2.3476 (Jul 7th low) and break below could take the pair towards 2.3348(38.2%fib).
Recommendation: Good to buy around 2.3500 with stop loss of 2.3400 and target price of 2.3580
