• GBP/NZD declined on Monday as recent economic data and comments from a Bank of England official led investors to increase their bets on future BoE rate cuts.
• Last week, data showed British retail sales dropped by 0.3% in December, contrary to expectations of a rise, while core consumer price growth measures fell sharply.
• Markets are currently pricing 62 basis points of rate cuts in 2025 from around 40 bps before the inflation data.
• The pair has seen 2.1798 from 2.1702 range on Monday , chart points to an drop towards level 2.1600.
• Immediate resistance is located at 2.1798 (Jan 20th high), any close above will push the pair towards 2.1860(38.2%fib).
• Immediate support is seen at 2.1678(50%fib) and break below could take the pair towards 2.1629(Lower BB).
Recommendation: Good to sell round 2.1750, with stop loss of 2.1850 and target price of 2.1620
