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FxWirePro: GBP/NZD surges sharply as strong UK pay growth lifts sentiment

•  GBP/NZD rose above 2.2000 level on Tuesday   after data showed UK wage growth exceeded expectations.

• Excluding bonuses, pay growth increased by 5.2% in the three months to October, driven by private-sector gains, surpassing the 5% forecast

• Traders anticipate the Bank of England will cut rates by around 70 basis points in 2025, similar to the expected scale of cuts from the Federal Reserve.

• Wednesday's UK inflation data will provide more insight into the Bank of England's future interest rate path.

•Technical signals are  strongly bullish  as RSI is   at 67, daily momentum studies  5, 9 and 10 DMAs are trending up.

• Immediate resistance is located at 2.1974 (38.2%fib), any close above will push the pair towards 2.1211(23.6%fib).

• Immediate support is seen at 2.1852 (38.2%fib) and break below could take the pair towards 2.1747(50%fib).

Recommendation: Good to buy around  2.2080, with stop loss of 2.1930 and target price of 2.2200

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