• GBP/NZD maintains its strength around the 2.1887 level, displaying a mild reaction to risk of BoE rate cut this week
• Attention will be focused on the BoE on Thursday for interest rate decision. According to money markets, there is a 59% probability that the BoE will reduce rates by 25 basis points next week.
• At GMT 17:18, the pair was trading up 0.14 percent at 2.1885 ,highest level since 20th March 2020.
• Technical highlight upside risks for GBP/NZD, with momentum studies, 5, 10 and 21 DMAs tracking north.
• Immediate resistance is located at 2.1904 (Daily high), any close above will push the pair towards 2.2009(23.6%fib).
• Strong support is seen at 2.1776 (38.2%fib) and break below could take the pair towards 2.1661(9DMA).
Recommendation: Good to buy around 2.1880, with stop loss of 2.1700 and target price of 2.2000
