FxWirePro: GBP/NZD downtrend slows, but bearish sentiment remains

• GBP/NZD initially gained but later pared gains as investors assessed mixed economic data and increased bets on potential interest rate cuts by the Bank of England...

• Investors were initially reassured by data showing inflation moving closer to the central bank’s 2% target, but strong manufacturing and retail sales figures on Friday raised concerns about renewed price pressures..

• Economic data earlier in the week suggested a slowdown, reinforcing expectations that the Bank of England may adopt a dovish monetary policy stance.,

• Traders see a 78% chance that the central bank will cut interest rates by 25 basis points when it meets next month to shore up the labour market.

• Immediate resistance is located at 2.2667(SMA 20 ), any close above will push the pair towards 2.2682(38.2%fib).

• Strong support is seen at 2.2401(23.6%fib) and break below could take the pair towards 2.2235 (Lower BB).

 Recommendation: Good to sell on  around 2.2570 with stop loss of  2.2670 and target price of 2.2500