GBP/NZD strengthened on Monday as investors focused on diverging interest-rate outlooks between the Bank of England and the U.S. Federal Reserve..
• Markets expect the Fed to cut rates at least twice this year, with a small chance of a third cut, keeping pressure on the dollar.
• In contrast, markets have fully priced in just one more Bank of England rate cut in 2026, giving sterling a relative yield advantage.
• Geopolitical tensions remain in focus after the U.S. move to oust Venezuela’s President Nicolás Maduro, adding to global uncertainty.
• Immediate resistance is located at 2.3455(Higher BB), any close above will push the pair towards 2.3606(23.6%fib).
• Immediate support is seen at 2.3238 (38.2%fib) and break below could take the pair towards 2.3166(SMA 20).
Recommendation: Good to buy around 2.3380, with stop loss of 2.3300 and target price of 2.3450
