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FxWirePro: GBP/NZD sustains gains as uptrend remains strong

• GBP/NZD extended advance  on Thursday as Middle East tensions and rising inflation concerns dampened New Zealand’s recovery outlook, weighing on the kiwi dollar.

• Expectations for an RBNZ rate hike in October declined after the central bank adopted a less hawkish tone in September, with weak growth and a struggling labor market weighing on the outlook.

•  Market pricing for a 25-basis-point interest rate hike by the Reserve Bank of New Zealand at its October meeting currently stands at around 35%.

• Upcoming New Zealand data on inflation, unemployment and economic growth will be closely watched as investors reassess expectations for interest rates.. 

• Immediate resistance is located at 2.3589(23.6%fib), any close above will push the pair towards 2.3664(Higher BB).

• Immediate support is seen at 2.3428 (38.2%fib) and break below could take the pair towards 2.3345 (SMA 20).

Recommendation: Good to buy around 2.3550, with stop loss of 2.3450 and target price of 2.3700

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