• GBP/NZD strengthened on Wednesday as risk-sensitive Kiwi dollar remained under strong bearish pressure, weighed by the risk-off sentiment
• A sell-off in technology stocks has intensified as investors question heavy investment in AI, stoking worries about a possible AI bubble burst during a period of geopolitical uncertainty in the Middle East.
• Prime Minister Keir Starmer's resignation this week paved the way for a leadership contest that could potentially end in former Greater Manchester mayor Andy Burnham taking the role in July or September.
•On the macro front, traders are anticipating the Bank of England to lift borrowing costs by at least 25 basis points before the year ends.
• Immediate resistance is located at 2.3386(23.6%fib), any close above will push the pair towards 23487(Higher BB).
• Immediate support is seen at 2.3218(38.2%fib) and break below could take the pair towards 2.3050(50%fib).
Recommendation: Good to buy around 2.3310 with stop loss of 2.2950 and target price of 2.3100
