FxWirePro: GBP/NZD gains some upside momentum but still bearish

• GBP/NZD  initially gained but gave up ground   as  investors digested interest rate decision by Reserve Bank of New Zealand .

• New Zealand’s central bank raised its benchmark rate by 25 basis points to 2.75% on Wednesday and signalled further hikes as it works to bring inflation back to target

• The Reserve Bank of New Zealand (RBNZ) was widely expected to raise its official cash rate by 25 basis points, with 27 of 31 economists polled by Reuters forecasting the move.

• The latest hike comes after the RBNZ raised rates for the first time in more than three years in July, signalling a departure from the aggressive monetary easing adopted after economic growth slowed sharply.  

• Immediate resistance is located at 2.3126(Higher BB), any close above will push the pair towards 2.3213(61.8%fib).

• Immediate support is seen at 2.2994(38.2%fib) and break below could take the pair towards 2.2926(SMA 20).

Recommendation: Good to sell around 2.3050, with stop loss of 2.3100 and target price of 2.2950