• GBP/ NZD steadied on Tuesday as investors looked towards Bank of England interest rate decision on Thursday.
• Market expect there is a 62% chance that the BoE hikes interest rates by 25 basis points this week, which would take them to 5.25%.
• A rally towards 2.0950 is possible if GBP/ NZD bulls overcome resistance at 23.6%fib.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 53,while moving averages and MACD are trending higher.
• Immediate resistance is located at 2.0781 ( 5DMA), any close above will push the pair towards 2.0861 (23.6%fib).
• Immediate support is seen at 2.0647(38.2%fib) and break below could take the pair towards 2.0492 (50%fib).
Recommendation: Good to buy around 2.0760, with stop loss of 2.0660 and target price of 2.0850
