• GBP/NZD consolidates around 2.2488 on Monday as markets awaited Thursday’s BoE policy decision.
• The Bank of England is widely expected to cut its key interest rate to 4.00% from 4.25% on Thursday, with another cut likely before year-end, despite June's inflation nearing twice the BoE's 2% target.
• Investors will closely watch the BoE’s tone and guidance on future policy moves, particularly as inflation remains elevated.
• The challenge for the central bank will be to balance the risk of doing too little to support growth against the risk of loosening policy too early while inflation remains above target..
• Immediate resistance is located at 2.2633(50%fib), any close above will push the pair towards 2.2686(Higher BB)
• Support is seen at 2.2436(38.2%fib) and break below could take the pair towards 2.2286 (Lower BB).
Recommendation: Good to buy around 2.2450 with stop loss of 2.2370 and target price of 2.2550
