• GBP/ NZD rose on Thursday as sterling was boosted after a narrow BoE rate decision.
• The Bank of England held rates on Thursday, but a close vote and hints that Governor Bailey may favor a cut have raised expectations of a possible move in December..
• According to the MPC, the economy faces higher demand risks, but inflation is less likely to stay elevated.
• Bailey was one of the five MPC members who kept rates unchanged, but he was the only one to believe that overall inflation risks had declined.
• Thursday’s decision marked the first pause in the BoE’s gradual, quarterly rate-cut cycle that began in August 2024.
• Immediate resistance is located at 2.3312 ( Daily high), any close above will push the pair towards 2.3496 (23.6% fib).
• Immediate support is seen at 2.3161(38.2% fib) and break below could take the pair towards 2.3029 (Daily low).
• Recommendation: Good to buy around 2.3270, with stop loss of 2.3160 and target price of 2.3400
