• GBP/NZD rose sharply on Thursday aggressive BoE tightening expectations boosted pound against weaker kiwi dollar.
• Expectations for more rate hikes are rising. On Wednesday, money markets were pricing in that BoE rates would peak in March 2024, reaching 6.28%.
• GBP/NZD vaulted higher, rising above 38.2% fib resistance ,hits highest level since 3rd July .
• Technicals are favouring bullish sentiment as RSI is at 51 and the pair is trading below 5, 9 & 11-DMAs.
• Immediate resistance is located at 2.0697 (June27th high), any close above will push the pair towards 2.0808 (23.6% fib)
• Support is seen at 2.0611(38.2% fib) and break below could take the pair towards 2.0463 (50% fib).
Recommendation: Good to buy around 2.0670, with stop loss of 2.0600 and target price of 2.0740.
