• 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
