• GBP /NZD rose sharply on Wednesday as dovish RBNZ guidance weighed on kiwi dollar sharply.
• RBNZ held the cash rate steady at 5.5% on Wednesday, but opened the door to monetary policy becoming less restrictive over time should inflation slow as expected.
• The decision was in line with the expectations of all economists polled, but the Reserve Bank of New Zealand's (RBNZ) accompanying commentary was more dovish than many had anticipated.
• The pound jumped 1.16% at 2.1118 against kiwi dollar , highest level since 2nd May high.
• The pairs rise above the 38.2% fib has reinforced the growing bullish strength, putting focus on 20100 level.
• Immediate resistance is located at 2.1122 (Daily high), any close above will push the pair towards 2.1176 (23.6% fib).
• Immediate support is seen at 2.1058 (38.2% fib) and break below could take the pair towards 2.0958 (50%fib).
Recommendation: Good to buy on dips around 2.1100, with stop loss of 2.1000 and target price of 2.1180.
