FxWirePro:GBP/NZD bulls loosen their grip a bit, dips to be bought

• GBP/ NZD initially dipped but recovered some ground as market attention tuned to next week’s Bank of England rate decision.

• Investors expect the Bank of England to cut interest rates by 25 basis points next Thursday to 4.75%, when it will also update its economic growth and inflation forecasts.

•Financial markets on Thursday priced in almost three quarter-point BoE rate cuts this year, compared with fewer than two in early January.

• A close above  support at 38.2 %fib will give further momentum to bears, opening the way for a run towards 2.2200 level.

• Immediate resistance is located at 2.2172(38.2 %fib), any close above will push the pair towards 2.2267 (Higher BB).

•   Immediate support is seen at 2.2008(50%fib)and break below could take the pair towards 2.1946 (Jan 29th).

Recommendation: Good buy around 2.2000 with stop loss of 2.1900 and target price of 2.2200