• GBP/NZD initially dipped but recovered some ground as traders positioned ahead of key central bank announcements from the Federal Reserve and Bank of England.
• Market participants remained cautious in the lead-up to key central bank decisions from both the U.S. Federal Reserve and the Bank of England.
• Markets will also closely watch the release of the latest UK inflation data for May, which is expected to offer fresh insight into the price pressures facing households and businesses.
• The figures will play a key role in shaping expectations for the Bank of England’s upcoming interest rate decision and broader monetary policy outlook.
• Money markets are broadly anticipating that the Bank of England will leave its benchmark interest rate unchanged at 4.25% when it meets on Thursday.
• Immediate resistance is located at 2.2434(Daily high), any close above will push the pair towards 2.2514 (50%fib)
• Support is seen at 2.2253 (61.8%fib) and break below could take the pair towards 2.2213 (Lower BB).
Recommendation: Good to buy around 2.2320 with stop loss of 2.2250 and target price of 2.2500
