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FxWirePro:GBP/NZD steadies above 2.0600 after BoE delivers bigger-than-expected rate hike

• GBP/ NZD initially dipped  on Thursday but rebounded after the Bank of England delivered a bigger-than-expected half a percentage point rate hike.

• The Bank of England (BoE) raised interest rates by 50 basis points (bps) to 5%, the highest since 2008, and its largest increase since February.

• In an up-and-down session, the pair hit low at 2.0501 in early trading then gained towards 2.0606.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 61 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  up. 

• Immediate resistance is located at 2.0650 ( 38.2% fib), any close above will push the pair towards 2.0750 (June 21st high).

• Immediate support is seen at 2.0532 (14DMA) and break below could take the pair towards 2.0490 (38.2% fib).

Recommendation: Good to buy around 2.0590, with stop loss of 2.0500 and target price of 2.0680
 

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