• GBP/NZD firmed on Monday as cable enjoyed a modest bounce as investors assessed slight chance of a single rate hike by the Bank of England (BoE) towards the end of the year.
•Markets are attaching a 70% chance of just one rate rise this year, compared with at least one rise and a strong chance of a second just a couple of weeks ago.
• BoE Governor Andrew Bailey said last week the central bank was not in a position to consider cutting interest rates.
•The drop in the oil price back towards $70 a barrel has taken the pressure off central bankers to raise borrowing costs, including the Bank of England.
• Immediate resistance is located at 2.3523(23.6%fib), any close above will push the pair towards 2.3603(Higher BB).
• Immediate support is seen at 2.3307 (38.2%fib) and break below could take the pair towards 2.3239(SMA 20).
Recommendation: Good to buy around 2.3450, with stop loss of 2.3350 and target price of 2.3550
