FxWirePro: GBP/NZD downtrend extends, remains on bearish path

• 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