• GBP/NZD dipped on Tuesday as investors weighed the likelihood of potential U.S.-Iran talks to end the Middle East conflict.
• Geopolitics continues to dominate sentiment. The looming U.S.-Iran ceasefire deadline on Wednesday evening (U.S. time) is keeping traders on edge. With Iran yet to confirm whether it will participate in talks, uncertainty remains elevated.
• On the domestic front, the UK macro backdrop is offering limited support to the pound. While inflation remains relatively sticky, economic growth has been underwhelming, creating a challenging environment for policymakers.
• Markets are currently pricing around a 60% probability of a June rate hike from the Bank of England, with the possibility of a second increase later in the year.
• Immediate resistance is located at 2.3041(50%fib), any close above will push the pair towards 2.3109(Feb 13th high).
• Strong support is seen at 2.2834(50% fib) and break below could take the pair towards 2.2773 (Lower BB).
Recommendation: Good to sell around 2.0930, with stop loss of 2.1000 and target price of 2.0850
