• GBP/NZD gained some ground on Wednesdayas hopes for a swift end to the Iran war faded, with renewed hostilities dampening risk appetite.
• Tensions in the Middle East intensified following Iranian attacks on Kuwait, which damaged the airport and left dozens injured. In response, U.S. forces conducted strikes on targets near the Strait of Hormuz, further escalating military activity in the region.
•On the data front,British services firms suffered a small fall in activity in May as the strains of the Iran war pushed up their costs sharply and hit optimism, a survey showed on Wednesday.
• The S&P Global Purchasing Managers’ Index (PMI) for the UK services sector declined to 49.3 in May from 52.7 in April, signalling a return to contraction and marking the first drop in output since April 2025.
• Immediate resistance is located at 2.2989(50%fib), any close above will push the pair towards 2.3066(Higher BB).
• Immediate support is seen at 2.2815(SMA 20) and break below could take the pair towards 2.2762(38.2%fib).
Recommendation: Good to sell around 2.2900 with stop loss of 2.2960 and target price of 2.2700
