FxWirePro : GBP/NZD attracts selling interest, vulnerable to more downside

• GBP / NZD dipped on Tuesday as the kiwi dollar gained traction amid renewed risk appetite following the US-China trade deal.

• On Monday, the United States and China agreed to a 90-day pause in their trade conflict, committing to cut mutual tariffs and halt additional punitive actions while negotiating a broader agreement.

• As part of the agreement, the U.S. will reduce tariffs on Chinese imports to 30% from the previous 145%, while China will lower its duties on American goods to 10% from 125% for a 90-day period.

• Despite the U.S.-China breakthrough, uncertainty lingers as tariffs remain elevated compared to late 2024 levels.

• In the UK, the job market showed further signs of slowing, with data reflecting the impact of a tax hike on employers and Donald Trump's trade tariffs. However, this may provide some reassurance to the Bank of England, signaling that inflationary pressures are easing.

• Immediate resistance is located at 2.2566(50% fib), any close above will push the pair towards 2.2629(Higher BB).

• Strong support is seen at 2.2394(38.2% fib) and break below could take the pair towards 2.2188(23.6% fib))

Recommendation: Good to sell around 2.2410, with stop loss of 2.2480 and target price of 2.2380