FxWirePro : GBP/NZD corrects to key fib level, uptrend still in play

• GBP/NZD slipped lower on Wednesday  as investors reacted to the Reserve Bank of New Zealand’s rate decision and awaited clearer signals on a potential rate cut by the Bank of England in June.

• New Zealand’s central bank cut its benchmark rate by 25 basis points to 3.25% on Wednesday and signaled a deeper easing cycle than projected three months ago, citing increased economic risks from shifting U.S. trade policies.

•The BoE cut rates by 25 bps to 4.25% earlier this month, following a 7-2 vote, and indicated that future cuts would be gradual and carefully considered.

• Stronger-than-expected UK inflation last week, combined with a hawkish vote split at the Bank of England’s recent meeting, has led traders to sharply reduce expectations for additional rate cuts this year.

• Immediate resistance is located at 2.2825(38.2% fib), any close above will push the pair towards 2.2848 (Higher BB).

• Strong support is seen at 2.2542 (50% fib) and break below could take the pair towards 2.2283(61.8% fib)

Recommendation: Good to buy  around 2.2560 , with stop loss of 2.0480  and target price of 2.2750