• 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
