• GBP/NZD strengthened on Tuesday as sterling was boosted after data showed a pick-up in UK wage growth.
• Data showed British pay growth accelerated in the last three months of 2024, underscoring why the Bank of England has adopted a careful stance about rate cuts despite a weak overall economy.
• Looking Ahead, investors awaited the Reserve Bank of New Zealand rate decision on Wednesday.
• The Reserve Bank of New Zealand (RBNZ) is expected to reduce its official cash rate by 50 basis points to 3.75% on Wednesday, following a 50 basis point cut in November 2024.
• Immediate resistance is located at 2.2165 (23.6% fib), any close above will push the pair towards 2.2250(Higher BB).
• Strong support is seen at 2.2000 (38.2% fib) and break below could take the pair towards 2.1874 (50% fib).
Recommendation: Good to sell on around 2.2140 with stop loss of 2.2250 and target price of 2.1900
