• GBP/NZD extended rally on Monday as markets shrugged off the effects of the U.S. attacks on Iranian nuclear sites in support of an Israeli military campaign.
• The move came as global markets showed a surprisingly muted reaction to heightened geopolitical tensions, including the U.S. military’s precision strikes on key Iranian nuclear sites in support of Israel’s ongoing campaign.
• Meanwhile, economic data showed that British business activity slightly grew in June, but worries remained with the conflict in the Middle East.
• The S&P Global UK Composite PMI rose to 50.7 in June from 50.3 in May, signaling modest growth in the private sector as it moved further above the 50.0 expansion mark.
• Technical signals are strongly bullish as RSI is at 52, daily momentum studies 21, 50 and 100 DMAs are trending up.
• Immediate resistance is located at 2.2699(50% fib), any close above will push the pair towards 2.2785(May 28th high).
• Strong support is seen at 2.2461(50% fib) and break below could take the pair towards 2.2269(61.8% fib).
Recommendation: Good to buy around 2.2600, with stop loss of 2.25100 and target price of 2.2700
