• GBP/NZD declined sharply on Wednesday as kiwi dollar was lifted by hawkish tilt by Reserve Bank of New Zealand.
• The Reserve Bank of New Zealand (RBNZ) raised rates 25 basis points to 1.0% and signaled more aggressive tightening.
• Markets now see rates reaching 2.5% by year end, up from 2.25% previously
• Selling pressure will remain in the short-term, only a move above 2.0054 (38.2%fib strong resistance will shift the bias higher.
• Technical signals show the pair could lose more ground as RSI is at 35 bearish, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 2.0054 (38.2%fib), any close above will push the pair towards 2.0177 (50%fib).
• Immediate support is seen at 1.9962(Daily low) and break below could take the pair towards 1.9896 (23.6%fib).
Recommendation: Good to sell round 1.9980, with stop loss of 2.0150 and target price of 1.9850
