• GBP/NZD slipped lower on Wednesday as investors digested RBNZ rate decision and assessed UK Autumn Budget.
• New Zealand’s central bank cut its official cash rate by 25 basis points to 2.25% on Wednesday, the lowest since mid-2022, but signalled that the easing cycle may be ending as early signs of economic recovery emerge.
• The RBNZ is now forecasting the cash rate will be at 2.20% in the first quarter of 2026 and 2.65% in the fourth quarter of 2027.
• British finance minister Rachel Reeves unveiled a major tax-raising budget that increases the burden on workers, pension savers, and investors to create more room to meet deficit-reduction targets.
• Immediate resistance is located at 2.3238(SMA 20), any close above will push the pair towards 2.3332(38.2%fib).
• Immediate support is seen at 2.3132(50%fib) and break below could take the pair towards 2.2938(61.8%fib).
Recommendation: Good to buy around 2.3320 with stop loss of 2.3250 and target price of 2.3500
