• GBP/NZD dipped on Tuesday as weak labor market data reinforced expectations that the Bank of England may cut interest rates as soon as March.
• Data from the Office for National Statistics showed UK unemployment rose to 5.2% in the three months to December from 5.1%, matching expectations.
• Annual average earnings growth, including bonuses, slowed to 4.2%, below the 4.6% forecast.
• The Bank of England kept rates at 3.75% earlier this month, but stronger-than-expected support for a cut boosted market bets on further reductions this year.
• Technical are bearish, daily RSI is negative at 27, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.2589 (38.2%fib), any close above will push the pair towards 2.2679(SMA 20).
• Immediate support is seen at 2.2378(23.6%fib) and break below could take the pair towards 2.2320(Lower BB).
Recommendation: Good to sell around 2.2390 with stop loss of 2.2470 and target price of 2.2300
