• GBP/NZD advanced on Tuesday as kiwi dollar weakened ahead of New Zealand’s upcoming labour market data .
.• Markets are widely expecting New Zealand’s upcoming labor report to show a rise in the unemployment rate to 5.3%, reflecting continued softening in labor market conditions.
•Deterioration in the labor market is expected to strengthen the case for the Reserve Bank of New Zealand (RBNZ) to ease monetary policy at its next meeting later this month.
• Meanwhile, UK services businesses saw the sharpest drop in new orders since November 2022 and cut jobs at the fastest pace in six months, adding to BoE growth concerns, a survey showed Tuesday.
• July's S&P Global Services PMI fell to 51.8 from 52.8 in June, a smaller decline than the initially reported drop to 51.2.
• Immediate resistance is located at 2.2562(50%fib), any close above will push the pair towards 2.2690(Higher BB)
• Support is seen at 2.2406 (38.2%fib) and break below could take the pair towards 2.2256 (Lower BB).
Recommendation: Good to buy around 2.2480 with stop loss of 2.2400 and target price of 2.2570
