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

• GBP/NZD dipped on Monday as oil prices tumbled more than 5% and UK gilt yields fell nearly 10 basis points across the two- to ten-year maturities.

• Oil prices after U.S. President Donald Trump said he held off a fresh attack on Iran as he sought a quick deal to reopen the Strait of Hormuz.

• Broader macroeconomic developments and geopolitical headlines are expected to keep currency markets volatile

• Market attention now turns to Friday's U.S. nonfarm payrolls report, which is expected to be the next major catalyst for GBP/ NZD.

• On the data front, British manufacturing activity expanded for a ninth consecutive month in July, but growth slowed to its weakest pace in four months as the conflict in Iran began to weigh on factory activity toward the end of the month, S&P Global's purchasing managers' survey showed.

• Immediate resistance is located at 2.2950 (50%fib), any close above will push the pair towards 2.3057(SMA 20).

• Immediate support is seen at 2.2842(Daily low) and break below could take the pair towards 2.2766(Lower BB).

Recommendation: Good to sell around 2.2900, with stop loss of 2.3000 and target price of 2.2800