• GBP/NZD steadied around 2.3120 as kiwi dollar remained under pressure from expectations of further rate cuts by RBNZ.
• Data on last week showed New Zealand’s GDP contracted 0.9% in Q2, a sharper decline than the 0.3% drop forecast by analysts and the RBNZ.
• he U.S. move in April to impose 15% tariffs on imports from New Zealand has added pressure to the economy, leaving it at a disadvantage compared with Australia, where goods face only a 10% rate.
• Analysts are now expecting the central bank to cut by 50 basis points in October and by a further 25 basis points in November.
• Technical are bullish, daily RSI is positive at 65, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 2.3150(23.6%fib), any close above will push the pair towards 2.3218(Higher BB)
• Support is seen at 2.2981 (38.2%fib) and break below could take the pair towards 2.2913 (SMA 20 low).
Recommendation: Good to buy around 2.3120 with stop loss of 2.3060 and target price of 2.3200
