FxWirePro: GBP/NZD downtrend loses momentum but bearish setup remains

• 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