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FxWirePro : GBP/NZD trades in tight range ahead of RBNZ rate decision

• GBP/NZD   traded in tight range on Monday as investors awaited  RBNZ policy meeting on Wednesday.

• After flagging a slower pace of easing in February, the RBNZ followed through with a 25 bps cut in April.

• The Reserve Bank of New Zealand is widely expected to cut its official cash rate by 25 basis points to 3.25% on Wednesday.

• Though out of recession, the economy remains fragile—with 5.1% unemployment, weak consumer confidence, and sluggish retail sales. Any further RBNZ rate cuts are likely to be gradual as global trade tensions have eased.

• Immediate resistance is located at 2.2771(38.2% fib), any close above will push the pair towards 2.2818 (Higher BB).

• Strong support is seen at 2.2540  (50% fib) and break below could take the pair towards 2.2447(May 15th low)

Recommendation: Good to buy  around 2.2600 , with stop loss of 2.0560  and target price of 2.2690

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