• GBP/NZD declined sharply on Thursday as pound was negatively impacted after Bank of England cut interest rates from a 16-year high.
• The Bank of England (BoE) reduced interest rates by a quarter point to 5% after a narrow vote in favor from policymakers, marking the first cut from the central bank since 2020.
• The pound fell to 2-week low, and was last down 0.88% against the kiwi dollar.
• GBP/NZD focus is on 2.1400(50%fib) support, a break below will accelerate losses towards 2.1300 level.
• Immediate resistance is located at 2.1572 (38.2%fib), any close above will push the pair towards 2.1786 (23.6%fib).
• Strong support is seen at 2.1400(50%fib) and break below could take the pair towards 2.1200(61.8%fib).
Recommendation: Good to sell on around 2.1450 , with stop loss of 2.1650 and target price of 2.1350
