FxWirePro: GBP/NZD dips below 2.2700 bears keep the advantage

• GBP/NZD dipped  on Monday    as investors weighed up the potential impact on the UK economy  due to ‌the war in the Middle East.

• Oil prices jumped more than 25% to their highest levels since mid-2022 on Monday, with the ​global benchmark Brent crude touching $119.50 per barrel.

•Investors view Britain as more vulnerable than many European countries to an energy-price shock, partly due to weak public finances that could worsen if the government provides relief to power users.

• Rising oil and gas prices is likely increase pressure on the government to spend potentially billions of pounds on new support measures.

• Finance Minister Rachel Reeves said Monday that a rapid de-escalation of the conflict is the best way to shield households from rising energy bills and that the government is ready to support releasing emergency oil reserves if oil prices spike.

• Immediate resistance is located at 2.2672 (38.2%fib), any close above will push the pair towards 2.2800(Higher BB).

• Immediate support is seen at 2.2593(SMA 20) and break below could take the pair towards 2.2398(23.6%fib).

Recommendation: Good to sell around 2.2680 with stop loss of 2.2760 and target price of 2.2570