• GBP/NZD steadied on Wednesday as GBP benefited from strongly weaker New Zealand dollar, but gains were limited ahead Bank of England (BoE) policy meeting.
• Market expects the BoE to increase the Bank Rate by 25 basis points (bps) during the upcoming policy meeting.
• GBP/NZD remains bullish, only a break and daily close below 50%fib support at 2.0665 will shift bias to the downside.
• Technicals are favouring bullish sentiment as RSI is at 58 and the pair is trading above 11 & 21-DMAs.
• Immediate resistance is located at 2.0958(Daily high ), any close above will push the pair towards 2.1041 (23.6%fib).
• Strong support is seen at 2.0830 (38.2%fib) and break below could take the pair towards 2.0710 (21DMA).
Recommendation: Good to buy around 2.0890, with stop loss of 2.0800 and target price of 2.0970
