• 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
