• GBP/NZD initially gained but gave upground as market eyed upcoming UK-EU summit and key UK CPI data.
• The United Kingdom has reached a comprehensive agreement with the European Union, representing the most substantial reset in their relationship since Brexit.
• This wide-ranging deal addresses multiple critical areas including trade, security, and cooperation, aiming to stabilize and redefine the ties between the two sides after years of negotiation and uncertainty..
• The UK Consumer Price Index (CPI) data is set to be released on Wednesday, drawing significant attention from investors, economists, and policymakers.
•UK inflation report is poised to play a critical role in shaping expectations about the Bank of England’s (BoE) monetary policy path in the coming months.
• Immediate resistance is located at 2.2625(April 30th high), any close above will push the pair towards 2.2771 (38.2% fib).
• Strong support is seen at 2.2497(50% fib) and break below could take the pair towards 2.2352(May 13th low)
Recommendation: Good to buy around 2.2500 , with stop loss of 2.0440 and target price of 2.2650
