• GBP/NZD slipped lower on Friday as weak data and fiscal uncertainty heighten expectations of aggressive BoE rate cuts.
• Retail sales in the UK saw a slight gain in June, underperforming expectations despite a weather-driven boost in food and gasoline purchases.
•Retail volumes climbed 0.9% in June, bouncing back from May’s 2.8% drop, though the rebound was weaker than the expected 1.2% gain.
• Disappointing UK retail sales have intensified bets on a near-term BoE rate cut, with a 25bps reduction under consideration.
• Lingering doubts over fiscal direction, coupled with high inflation and climbing gilt yields, are also weighing on the British pound.
• Immediate resistance is located at 2.2473(50% fib), any close above will push the pair towards 2.2519(SMA 20).
• Support is seen at 2.2296 (Lower BB) and break below could take the pair towards 2.2205 (38.2% fib)
Recommendation: Good to sell around 2.2360, with stop loss of 2.2460 and target price of 2.2270
