• GBP/NZD moved slightly higher on Wednesday as investors monitored the fragile Middle East truce and assessed domestic inflation data.
• It was unclear whether Iran or Israel Washington's ally in the two-month conflict - agreed with the extension, and the prospect of peace talks was uncertain as the vital Strait of Hormuz shipping route remained blocked.
• Markets have also been closely focused on interest-rate expectations after the Iran war pushed up inflation forecasts. Money markets were last pricing in one Bank of England rate hike this year, with some chance of a second.
•The BoE is, however, widely expected to leave rates unchanged when it meets later this month, with markets assigning only about a 10% chance of a hike.
• Immediate resistance is located at 2.2937(50%fib), any close above will push the pair towards 2.3031(50%fib).
• Immediate support is seen at 2.2278(Lower BB) and break below could take the pair towards 2.2781(38.2%fib).
Recommendation: Good to sell around 2.2900 with stop loss of 2.2950 and target price of 2.2860
