• GBP/NZD rose on Wednesday as the kiwi dollar as investors continued to gauge the potential timing of rate hikes from RBNZ.
• The central bank has recently signalled that interest rates are likely to remain at current levels for some time, pushing back expectations of a near-term hike.
• The central bank cut its policy rate by 25 basis points in November to 2.25%, while emphasising that future moves will depend on economic and inflation developments.
• Analysts believe the Reserve Bank of New Zealand’s rate-cutting cycle is likely on hold for now.
• Immediate resistance is located at 2.3434 (Daily high), any close above will push the pair towards 2.3563 (23.6%fib).
• Immediate support is seen at 2.3252(Daily low) and break below could take the pair towards 2.3187(38.2%fib).
Recommendation: Good to buy around 2.3370 with stop loss of 2.3300and target price of 2.3500
