• GBP/NZD consolidated around 2.2810 on Thursday as investors reassessed the Iran conflict tension.
• The conflict in the Middle East shows no signs of easing, keeping traders cautious and driving flows toward the U.S. dollar as a safe-haven currency.
• Crude prices rose further following Iranian attacks on shipping in the Strait of Hormuz. Statements by Iran’s leadership suggesting the strait could remain closed have reinforced fears of supply disruptions.
• Investors are closely monitoring key economic releases later this week, including the UK’s January GDP estimate and output data, as well as U.S. durable goods orders, GDP, and the Core PCE index on Friday.
•The pound remains vulnerable to further declines unless risk sentiment stabilizes and geopolitical tensions ease.
• Immediate resistance is located at 2.2849(Higher BB), any close above will push the pair towards 2.2694(38.2%fib).
• Immediate support is seen at 2.2614(SMA20) and break below could take the pair towards 2.2420(23.6%fib).
Recommendation: Good to sell around 2.2820 with stop loss of 2.2880 and target price of 2.2760
