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FxWirePro: GBP /NZD uptrend gains sharp momentum after RBNZ holds rates, softens hawkish tone

• GBP /NZD rose on Wednesday  as New Zealand dollar tumbled after RBNZ trimmed its forecast for a peak in rates.

• New Zealand's central bank held the cash rate steady at 5.5%, catching markets by surprise as policymakers said the risks to the inflation outlook have become more balanced.

• The RBNZ also trimmed its forecast cash rate peak to 5.6% from a previous projection of 5.7%.

• The pairs rise above the 38.2% fib has reinforced the growing bullish strength, putting focus on 2.0900 level.

• From a technical viewpoint, RSI  is strongly bullish at 62, daily momentum studies, 5, 9 and 11 are trending up.

• Immediate resistance is located at 2.0837 (23.6% fib), any close above will push the pair towards 2.0893(Higher BB).

• Immediate support is seen at 2.0693 (38.2% fib) and break below could take the pair towards 2.0568 (50%fib).

Recommendation: Good to buy on dips around 2.0780, with stop loss of 2.0650 and target price of 2.0900
 

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