• 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
