GBP/NZD edged lower on Wednesday after the Federal Reserve raised interest rates and signalled further increases in borrowing costs in the coming months..
• The Fed raised interest rates by 25 basis points, its first hike since 2023, and signalled further increases ahead. New Chair Kevin Warsh joined the unanimous vote in favor of the move.
• Speaking in Washington after the decision, Warsh echoed the Fed’s statement, pledging that policymakers would “deliver price stability.”.
• Oil prices fell after reports that Saudi Arabia was offering additional crude cargoes via Oman following drone attacks that damaged an oil pipeline to the Red Sea.
• Meanwhile, the Bank of England is expected to hold interest rates steady at Thursday’s meeting as markets assess still-elevated UK inflation..
• Immediate resistance is located at 2.3496(Sep 16 high), any close above will push the pair towards 2.3562(23.6%fib).
• Immediate support is seen at 2.3350(38.2%fib) and break below could take the pair towards 2.3182(50%fib).
Recommendation: Good to buyl around 2.3350, with stop loss of 2.3300 and target price of 2.3485
