FxWirePro: GBP/NZD continues to recovers , upside pressure builds

• 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