• GBP/NZD initially dipped but recovered some as market eyed the upcoming UK-EU summit and key UK CPI data.
• British Prime Minister Keir Starmer is set to host EU leaders in London on Monday to reset relations, focusing on progress in select areas while leaving some topics off the table.
• Britain’s Labour government aims to pursue a defence and security pact that past Conservative governments did not seek during Brexit negotiations..
• Market focus will also be on next week’s UK CPI reading, which could sway investor sentiment and influence the GBP/NZD pair amid evolving BoE rate outlooks.
• Immediate resistance is located at 2.2678(50% fib), any close above will push the pair towards 2.2781 (Higher BB).
• Strong support is seen at 2.2433 (61.8% fib) and break below could take the pair towards 2.2354(May 13th low)
Recommendation: Good to buy around 2.2700 , with stop loss of 2.0640 and target price of 2.2760
