• GBP/NZD initially gained on Thursday but gave up some ground as investors digested Bank of England rate decision.
• The Bank of England (BoE) held interest rates steady as expected and said it would need more evidence that inflation is set to fall to its 2% target before cutting rates.
• At GMT 16:17, the pair was trading 0.02% higher at 2.0731, slightly lower from daily high high at 2.0828.
• Technical signals are bullish as RSI is at 65, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 2.0835 (38.2%fib), any close above will push the pair towards 2.0931 (Jan 23rd high).
• Strong support is seen at 2. 0672 (50%fib) and break below could take the pair towards 2.0540 (61.8%fib).
Recommendation: Good to buy on dips around 2.0720 with stop loss of 2.0650 and target price of 2.0940
