• GBP/NZD strengthened after the Reserve Bank of New Zealand (RBNZ) cut interest rates as expected.
• The RBNZ cut its official cash rate to 4.75% from 5.25%, in line with market expectations.
• The RBNZ policymakers' growing confidence that consumer price index inflation will stay within the bank's 1% to 3% target range was the main factor for Wednesday's cut.
• Technical signals are bullish as RSI is trending up at 61, moving averages are pointing north
• Immediate resistance is located at 2.1518 (38.2% fib), any close above will push the pair towards 2.1556(Aug 6th high).
• Strong support is seen at 2.1412 (38.2% fib) and break below could take the pair towards 2.1335 (50% fib).
Recommendation: Good to buy around 2.1430 with stop loss of 2.1350 and target price of 2.1550
