• GBP/NZD edged higher on Wednesday as persistent geopolitical uncertainty in the Middle East and ongoing UK political tensions kept investors cautious.
• Prime Minister Keir Starmer is, under intense pressure as many MPs urge him to resign, said on Wednesday he will carry on with reforms and warned that his departure could lead to chaos...
• The political turmoil is exacerbating UK fiscal concerns with long-term gilt yields climbing to their highest levels since 1998 as traders fear a regime change could usher in a fresh wave of unfunded spending.
• Markets remain cautious amid mixed risk sentiment, with attention on developments in the Middle East, US political and trade news involving US President Donald Trump and China.
• Looking ahead, next week’s UK CPI, RPI, and PPI releases will be closely watched for signals on inflation momentum and potential implications for Bank of England policy.
• Immediate resistance is located at 2.880(50%fib), any close above will push the pair towards 2.2922 (SMA 20).
• Immediate support is seen at 2.2676(38.2%fib) and break below could take the pair towards 2.2628(Lower BB).
Recommendation: Good to sell around 2.2940 with stop loss of 2.2900 and target price of 2.2680
