• GBP/NZD strengthened on Tuesday but gains were limited as traders adjusted positions ahead of RBNZ rate decision.
•The Reserve Bank of New Zealand (RBNZ) is expected to raise its official cash rate (OCR) by 25 basis points to 5.50% on Wednesday
• Technicals are favouring bearish sentiment as RSI is at 44 and the pair is trading below 9,11 & 14-DMAs.
• Immediate resistance is located at 1.9884(38.2% fib), any close above will push the pair towards 1.9940 (14DMA)
• Strong support is seen at 1.9746 (Daily low)and break below could take the pair towards 1.9687(50% fib).
Recommendation: Good to sell around 1.9940 with stop loss of 2.0100 and target price of 1.9850
