• GBP/NZD slipped lower on Tuesday as a convergence of domestic political uncertainty and deteriorating geopolitical expectations weighed on pound.
• Prime Minister Keir Starmer rejected resignation calls after Labour’s local election losses, saying he would continue governing despite growing pressure for a departure timetable..
• Mounting debt market stress shows concern that political change could lead to higher spending and weaker UK fiscal stabilit..
• Furthermore, Inflation concerns are building as oil prices climb and U.S. CPI comes in hot, adding pressure on the Bank of England’s policy stance.
• Immediate resistance is located at 2.895(50%fib), any close above will push the pair towards 2.2929 (SMA 20).
• Immediate support is seen at 2.2686(38.2%fib) and break below could take the pair towards 2.2636(Lower BB).
Recommendation: Good to sell around 2.2760 with stop loss of 2.2860 and target price of 2.2680
