• GBP/NZD recovered ground on Wednesday as investors attention turned towards Bank of England rate decision on Thursday.
• The Bank of England is expected to keep rates unchanged this week despite inflation staying above target in 2026, as policymakers wait to assess risks from the energy crunch.
•Markets expect the BoE to hold rates at 3.75% on Thursday, after Governor Andrew Bailey signalled that a near-term rate hike is unlikely.
• After a unanimous decision to hold rates at 3.75% last month, the MPC could be more divided this week amid rising inflation risks and stronger-than-expected business activity in April.
Immediate resistance is located at 2.3178 (38.2%fib), any close above will push the pair towards 2.3243(Higher BB).
• Immediate support is seen at 2.3022 (SMA20) and break below could take the pair towards 2.2963(50%fib).
Recommendation: Good to buy around 2.3060 with stop loss of 2.2100 and target price of 2.3250
