• 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
