• GBP/NZD declined on Thursday as sterling attracted sellers after Bank of England (BoE) adopted a more dovish tone on inflation.
•Bank of England raised its main interest rate but dropped its pledge to respond forcefully, as necessary to signs of further inflationary pressure
• By 17:37 GMT, the pound was down 0.65% against the kiwi dollar to $1.8888. It dropped as low as 1.8846 after the decision.
• Todays drop has put GBP/NZD back below 38.2%fib and has put the 23.6%fib support in play.
•Technical are bearish, daily RSI is negative at 39, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.8948 (38.2%fib), any close above will push the pair towards 1.9034(5DMA).
• Immediate support is seen at 1.8846 (Daily low) and break below could take the pair towards 1.8783 (23.6%fib).
Recommendation: Good to sell round 1.8890, with stop loss of 1.8980 and target price of 1.8800
