FxWirePro: GBP/NZD uptrend loses steam, remains on bullish path

• GBP/NZD dipped on Thursday as the British pound weakened after the Bank of England kept interest rates unchanged.

• The Bank of England kept Bank Rate unchanged at 3.75%, with three of its nine policymakers voting for a hike to 4% and none supporting a rate cut..

• The Bank of England put gilt sales on hold for six months and ended sales of long-dated bonds as part of a long-term programme to reduce its remaining £488 billion holdings by 2034.

• The decision was unveiled alongside the widely expected rate hold, just days after British 30-year gilt yields reached their highest since 1998 as a global bond selloff intensified.

• The BoE’s new strategy will eliminate the gilts held for monetary-policy purposes, while £120 billion of its £488 billion portfolio, consisting of bonds maturing from 2049 onward, will remain permanently to support banknotes.

• Immediate resistance is located at 2.3522(23.6%fib), any close above will push the pair towards 2.3587(Higher BB).

• Immediate support is seen at 2.3228(38.2%fib) and break below could take the pair towards 2.3098(SMA 20).

Recommendation: Good to buy around 2.3300, with stop loss of 2.3200 and target price of 2.3380