• GBP/NZD dipped on Wednesday after BoE Governor Bailey hinted at the possibility of rate cuts due to financial pressures.
• BoE 's latest Financial Stability report revealed that the UK central bank is still struggling with an unbalanced economy. BoE noted that downside risks remain despite a well-capitalized banking sector and easing inflationary pressures.
• GBP/NZD remains vulnerable, only a break and daily close above 50% fib will shift bias to the upside.
• Immediate resistance is located at 2.0533(38.2% fib), any close above will push the pair towards 2.0536 (11DMA).
• Strong support is seen at 2.0400 (23.6% fib) and break below could take the pair towards 2.0283(Oct 10th low).
Recommendation: Good to sell on around 2.0460, with stop loss of 2.0550 and target price of 2.0370
