• GBP/NZD recovered some ground on as investors awaited outcoe of UK local elections.
• UK elections could reshape politics if voters shift to populist parties, weakening Labour and Conservative dominance..
• local elections remain the main focus for sterling. A weak showing for Labour is largely expected, limiting the potential for major market surprises.
•Polls indicate that Nigel Farage’s Reform UK could expand its council control in England and emerge as a key opposition force in Scotland and Wales against Scottish National Party and Plaid Cymru.
• Immediate resistance is located at 2.2943 (SMA 20), any close above will push the pair towards 2.3002(50fib).
• Immediate support is seen at 2.2766(38.2%fib) and break below could take the pair towards 2.24574(23.6%fib).
Recommendation: Good to sell around 2.2850 with stop loss of 2.2900 and target price of 2.2760
