• GBP/NZD consolidated around 2.2530 as investors digested comments BoE Governor Bailey and UK parliament vote on welfare spending.
• Bank of England Governor Andrew Bailey on Tuesday pointed to a weakening UK labour market and said growing global uncertainty had clearly impacted economic growth and investment plans..
• Meanwhile, British Prime Minister Keir Starmer passed the first hurdle in his welfare reform plans on Tuesday, as lawmakers opposing the bill failed to block it with a reasoned amendment.
• On the data front. Britain’s manufacturing sector showed early signs of recovery in June, with firms raising prices to offset rising labour costs. The S&P Global/CIPS Manufacturing PMI rose for a third straight month to 47.7 from 46.4 in May
• Technical signals are strongly bullish as RSI is at 51, daily momentum studies 5, 11 and 14 DMAs are trending up.
• Immediate resistance is located at 2.2699(50% fib), any close above will push the pair towards 2.2785(May 28th high).
• Strong support is seen at 2.2461(50% fib) and break below could take the pair towards 2.2269(61.8% fib).
Recommendation: Good to buy around 2.2500, with stop loss of 2.2400 and target price of 2.2700
