FxWirePro: GBP/NZD gains capped as market focus shifts to inflation and rate expectations

• GBP/NZD edged higher on Friday, but the gains were capped as market attention turned toward inflation and interest rate expectations.

•With easing tensions between the U.S. and China, traders shifted their focus back to economic fundamentals, particularly the outlook for inflation and central bank policies

• Bank of England Governor Andrew Bailey acknowledged on Thursday that the UK's economic growth is facing pressure due to U.S. tariffs.

•. Bailey also addressed concerns regarding inflation, stating that any potential rise in inflation later this year is expected to be temporary.

•On the data front, UK retail sales volumes rose by 0.4% in March alone, after downwardly revised growth of 0.7% in February, the Office for National Statistics said on Friday.

• Immediate resistance is located at 2. 2377 (38.2%fib), any close above will push the pair towards 2. 2539 (50%fib).

• Immediate support is seen at 2.2170 (23.6%fib) and break below could take the pair towards 2.2020 (Lower BB).

Recommendation: Good to sell around 2. 2400, with stop loss of 2. 2500, and target price of 2.330