• GBP/NZD initially dipped but recovered some ground as the escalating Middle East war and surging oil prices deepened inflation fears and cemented expectations for the BOE to hike interest rates.
• • Oil prices rose over 1% as the Iran conflict showed no signs of easing, with the U.S. preparing to deploy additional troops to the Middle East.
• The BoE held rates at 3.75%, but flagged inflation risks, prompting markets to price in a ~70% chance of an April hike and up to three increases by year-end.
• UK fiscal concerns intensified after February borrowing exceeded expectations, driven by higher debt costs, while the Iran conflict pushed up funding pressures and calls for increased public spending.
• Immediate resistance is located at 2.2953 (61.8%fib), any close above will push the pair towards 2.2992(Higher BB).
• Immediate support is seen at 2.2775(50%fib) and break below could take the pair towards 2.2695 SMA 20).
Recommendation: Good to sell around 2.2900 with stop loss of 2.2980 and target price of 2.2850
