• GBP/NZD strengthened on Thursday as political tensions in the UK eased, helping stabilize investor sentiment.
• The rebound comes as markets seek clarity on the UK’s fiscal path and political stability following the government's welfare policy reversal..
• Data from the S&P UK services PMI showed that the British services sector activity expanded at the fastest rate in almost a year, while the prices charged rose at the slowest pace in nearly four years.
•June's PMI was slightly stronger than a preliminary estimate of 51.3 for the month and it marked the fastest pace of growth since August 2024.
•The Bank of England is closely assessing service sector prices to gauge inflation pressure. Investors widely expect a rate cut in August.
• Immediate resistance is located at 2.2550(Daily high), any close above will push the pair towards 2.2652 (50%fib)
• Support is seen at 2.2385 (61.8%fib) and break below could take the pair towards 2.2257 (Lower BB).
Recommendation: Good to buy around 2.2480 with stop loss of 2.2380 and target price of 2.2650
