FxWirePro: GBP/NZD pauses downtrend and consolidates

• GBP/NZD edged higher on Monday as investors geared up for interest rate decisions from the U.S. Federal Reserve and the Bank of England.

• Global investors are awaiting the U.S. Federal Reserve’s policy decision on Wednesday, with officials divided over whether further rate cuts are needed to support jobs or risk stoking inflation.

• Traders are pricing in a 90% chance of a 25-basis-point rate cut this week, according to CME Group’s FedWatch tool, with the odds recently lifted by mixed U.S. economic data and comments from Fed officials.

• Meanwhile, the Bank of England meets next week on December 18, with markets also pricing in a 25-basis-point rate cut to 3.75%.

• Immediate resistance is located at 2.3138(38.2%fib), any close above will push the pair towards 2.3199 (SMA 20).

•  Immediate support is seen at 2.2934(61.8%fib) and break below could take the pair towards 2.2896 (Lower BB).

 Recommendation: Good to sell around 2.3100 with stop loss of 2.3180 and target price of 2.3020