• GBP/NZD firmed on Monday as investors turning their attention to the UK’s preliminary Q2 GDP figures due later this week.
• UK economic growth is forecast to ease to 0.4% in Q2 from 0.6% in Q1, pointing to a moderation in the pace of expansion.
• On a monthly basis, UK GDP is expected to contract 0.1% in June, reversing the 0.1% growth recorded in May.
•The BoE has maintained a cautious stance, awaiting developments in the Middle East rather than tightening policy, while the ECB increased rates in June.
• Investors are now pricing in one Bank of England rate hike by year-end, with a second hike fully priced in by September next year.
• Immediate resistance is located at 2.2978(38.2%fib), any close above will push the pair towards 2.3085(SMA20).
• Immediate support is seen at 2.2870(38.2%fib) and break below could take the pair towards 2.7727(Lower BB).
Recommendation: Good to sell around 2.3080 , with stop loss of 2.3180 and target price of 2.3000
