• GBP/ NZD rose strongly on Wednesday as kwi dollar attracted selling pressure after RBNZ cuts rates and signaled further reductions.
• Investors reacted by knocking the kiwi dollar down against pound , wiping out most of the gains made overnight.
• The RBNZ cuts rates by 25 basis points to 5.25%, marking the first easing in over four years. The central bank signals further reductions, projecting a rate of 3.85% by the end of 2025.
•Immediate resistance is located at 2.1450 (38.2%fib), any close above will push the pair towards 2.1581 (Aug 6th high).
• Support is seen at 2.1282 (50%fib) and break below could take the pair towards 2.1116 (61.8%fib).
Recommendation: Good to buy around 2.1330, with stop loss of 2.1220 and target price of 2.1400
