• GBP/NZD held steady around 2.3600 on Wednesday as investors awaited the release of the UK’s monthly GDP figures for fresh trading signals.
• The UK economy is projected to have contracted 0.1% in August following solid growth of 0.4% in July, with upcoming manufacturing and industrial production data expected to provide additional clues about economic conditions.
• Meanwhile, Bank of England Chief Economist Huw Pill, who has backed quarter-point rate hikes in recent months, expressed scepticism about market expectations for four interest-rate increases over the coming year.
• Markets are pricing in an almost certain Bank of England rate hike in November, followed by three additional increases by September 2027.
• Immediate resistance is located at 2.3681(23.6%fib ), any close above will push the pair towards 2.3774 (Higher BB).
• Strong support is seen at 2.3518(38.2%fib) and break below could take the pair towards 2.3495(SMA 20).
Recommendation: Good to buy around 2.3550 with stop loss of 2.3450 and target price of 2.3700
