FxWirePro: GBP/NZD extends drop, eyes 2.2800 level

• GBP/NZD  dipped on Monday as risk appetite improved following Iran’s proposal to reopen the Strait of Hormuz boosting kiwi dollar.

• Investors are bracing for a packed week of economic data releases and major global central bank decisions, while closely tracking developments in U.S.–Iran peace talks for signals on geopolitical risk and market sentiment.

• Markets widely anticipate the Bank of England will maintain interest rates at 3.75%, with analysts pointing to a strong or near-unanimous vote to stay on hold amid geopolitical uncertainty..

• Last week, UK inflation printed at 3.3% YoY, driven by surging fuel prices, leading markets to reprice expectations to two rate hikes this year from a previous outlook of one.

• Immediate resistance is located at 2.3019 (SMA 20), any close above will push the pair towards 2.3154 (61.8% fib).

• Strong support is seen at 2.2884(50% fib) and break below could take the pair towards 2.2826 Lower BB).

Recommendation: Good to sell  around 2.2910, with stop loss of 2.2960  and target price of 2.2800