• GBP/NZD gained some ground on Friday as kiwi dollar was pressured by weak domestic manufacturing data and soured risk sentiment.
• New Zealand’s manufacturing sector expanded only marginally in April, with growth slowing to a six-month low as the Middle East conflict raised costs and disrupted supply chains, a survey showed Friday.
• The Bank of New Zealand–BusinessNZ Performance of Manufacturing Index fell to a seasonally adjusted 50.5 in April from a revised 52.8 in March..
• Looking ahead, markets will focus on New Zealand’s Q1 producer price data due Tuesday for clues on inflation ahead of the Reserve Bank of New Zealand May policy meeting.
• Immediate resistance is located at 2.2835(50%fib), any close above will push the pair towards 2.2910(SMA 20).
• Immediate support is seen at 2.2642(50%fib) and break below could take the pair towards 2.2573(Lower BB).
Recommendation: Good to sell around 2.2850 with stop loss of 2.2950 and target price of 2.2750
