• GBP/NZD gained some ground on as antipodean New Zealand dollar weakened as further escalation in the U.S.-Iran war spurred inflation concerns.
• Markets have reacted positively, albeit cautiously, to reports since Monday that the U.S. is seeking an end to hostilities
• Uncertainty remains, however, over the timeline for reopening the Strait of Hormuz to oil tankers, leaving investors wary about the pace of tangible progress.
• Reserve Bank of New Zealand will have to tighten this year, but have scaled back bets on an early move following cautious comments from RBNZ Governor Anna Breman.
• Pricing for May implies a 44% chance of a quarter point hike in the 2.25% cash rate, compared to 68% at the start of the week.
• Immediate resistance is located at 2.3036(38.2%fib), any close above will push the pair towards 2.3132(Higher BB).
• Immediate support is seen at 2.2919( 50%fib) and break below could take the pair towards 2.2801(61.8%fib).
Recommendation: Good to buy around 2.3000 with stop loss of 2.2920 and target price of 2.3100
