FxWirePro: GBP/NZD downtrend loses steam but outlook still bearish

• GBP/NZD initially moved higher on Monday but pared gains as renewed U.S.-Iran clashes fueled inflation concerns.

•U.S. President Donald Trump warned Iran that the United States would “hit them hard” after Tehran fired missiles overnight at two U.S. military bases in Jordan, responding to the U.S. strike on Larak Island.

• There are no major UK events scheduled until Thursday’s Monetary Policy Report hearings, when policymakers will face questions from lawmakers rather than deliver a formal statement. Attention will then turn to the Governor’s speech at 08:50 GMT on Friday, which could provide further clues on the Bank of England’s policy outlook..

• Markets will focus on the U.S. payrolls report on September 4, followed by U.S. and UK CPI data on September 11 and 16, respectively, as investors seek fresh clues on the Federal Reserve’s and Bank of England’s policy paths heading into year-end.

• Immediate resistance is located at 2.2922 (SMA 20), any close above will push the pair towards 2.3057(SMA 20).

• Immediate support is seen at 2.2792(Lower BB) and break below could take the pair towards 2.2711(Lower BB).

Recommendation: Good to sell around 2.2900, with stop loss of 2.3000 and target price of 2.2800