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FxWirePro: GBP /NZD inches higher but setup is negative

• GBP/NZD edged higher but gains were limited as traders cautiously reduce positions ahead of the Nov. 6 BoE rate decision.

• A slowdown in key economic data alongside cooling inflation has reinforced market speculation that the Bank of England may move toward rate cuts sooner than expected.

• Financial markets are closely watching Chancellor Rachel Reeves’s late-November budget for clues on the scale of potential tax and spending adjustments, as tighter fiscal measures could pave the way for earlier Bank of England rate cuts.

• Markets currently see around a one in three chance of a 25 basis point BoE rate cut next week.

• Immediate resistance is located at 2.3037(50%fib), any close above will push the pair towards 2.3157(Oct 28th high).

• Immediate support is seen at 2.2851(38.2%fib) and break below could take the pair towards 2.2765(Lower BB).

Recommendation: Good to sell around 2.2930, with stop loss of 2.2360, and target price of 2.2860

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