FxWirePro : GBP/NZD downside pressure builds, key support level in focus

• GBP/NZD dipped on Monday as dovish comments from BoE Governor Andrew Bailey pressured the pound.

• Governor Andrew Bailey emphasizing the importance of upcoming labour market data due Thursday, suggesting rate cuts could be on the table if the jobs picture deteriorates further..

•  Data last week showed the UK economy shrank for a second month in May. The inflation report this week is expected to show consumer price pressures continued to accelerate in June.

• The Bank of England’s next policy decision is due in August, and current market expectations reflect a full pricing of a quarter-point cut, with an additional easing move projected later this year.

•From a technical perspective, the outlook remains bearish, with the RSI at 47 and the 5-, 9-, and 11-day moving averages all pointing lower.

• Immediate resistance is located at 2.2557(20 SMA), any close above will push the pair towards 2.2632(50%fib)

• Support is seen at 2.2408 (38.2%fib) and break below could take the pair towards 2.2328 (Lower BB).

Recommendation: Good to sell  around 2.2510 with stop loss of 2.2600  and target price of 2.2450