• GBP/NZD traded flat on Tuesday as investors remained cautious ahead of the Reserve Bank of New Zealand’s policy meeting on Wednesday.
• Investors are closely watching the RBNZ for any changes in interest rates or forward guidance, especially amid persistent inflation pressures and a mixed domestic economic outlook.
• The Reserve Bank of New Zealand is widely expected to cut its official cash rate by 25 basis points to 3.25% on Wednesday.
• Swaps imply a quarter-point rate cut has been fully priced in, with rates set to hit 2.85% later this year.
• Immediate resistance is located at 2.2755(50% fib), any close above will push the pair towards 2.2994 (38.2% fib).
• Strong support is seen at 2.2639 (SMA 9) and break below could take the pair towards 2.2517(61.8% fib)
Recommendation: Good to buy around 2.2650 , with stop loss of 2.0560 and target price of 2.2750
