• GBP / NZD strengthened on Monday as truce in the U.S.-China trade war set off a relief rally.
•After two days of talks in Geneva, U.S. Treasury Secretary Scott Bessent announced a 90-day pause, during which tariffs would be reduced by over 100 percentage points.
• Under the deal, the U.S. will lower tariffs on Chinese imports to 30% from 145%, while China will cut duties on U.S. goods to 10% from 125% for 90 days.
• The cheer was tempered by caution, as a permanent trade deal is still needed, and higher tariffs could continue to weigh on the global economy.
• Technical signals are bullish as RSI is at 52, daily momentum studies 5, 9 and 14 DMAs are trending north..
• Immediate resistance is located at 2.2540(May 9th high), any close above will push the pair towards 2.2704 (38.2% fib).
• Strong support is seen at 2.2406(50% fib) and break below could take the pair towards 2.2025 (61.8% fib))
Recommendation: Good to buy around 2.2450, with stop loss of 2.2350 and target price of 2.2550
