FxWirePro : GBP/NZD recovers from initially dip as markets eye BoE rate decision

• GBP/NZD initially dipped but recovered ground  on Wednesday as investors positioned  ahead of Bank of England rate cut on Thursday.

 • The Bank of England is widely anticipated to lower its benchmark interest rate from 4.25% to 4.00% at its policy meeting on Thursday, marking a shift toward monetary easing despite persistent inflationary pressures.

• June’s inflation reading came in at nearly double the central bank’s 2% target, highlighting the difficult balancing act policymakers face between supporting a slowing economy and containing price growth.

• Markets are also pricing in at least one more rate cut before the end of the year, as the BoE responds to weakening consumer demand and broader signs of economic fatigue.

• Immediate resistance is located at 2.2566(38.2%fib), any close above will push the pair towards 2.2633(Higher BB)

• Support is seen at 2.2493 (SMA 20) and break below could take the pair towards 2.2340 (Lower BB).

Recommendation: Be on sideliness