FxWirePro: GBP/NZD outlook weaker on renewed downside pressure

• GBP/NZD   dipped below 2.3000 level as  investors digested New Zealand’s labour market data. .

• New Zealand’s unemployment eased to 5.3% in Q1, but underlying labour market weakness sustains expectations of a July hike.

• The jobless rate came in below the 5.4% forecast, while employment rose just 0.2% versus the expected 0.3%, and the participation rate was 70.4%, slightly under the 70.5% forecast..

• The central bank will monitor wage inflation for signs of persistent price pressures, though Q1 data likely only partly reflects the impact of the war..

• Wage growth picked up in the quarter, with the private sector labour cost index (excluding overtime) rising 0.5%, up from 0.4% previously.

• The central bank kept its cash rate at 2.25% in April to assess the impact of Middle East tensions, but signalled it stands ready to act if inflation rises.

• Immediate resistance is located at 2.3145(50%fib), any close above will push the pair towards 2.3160(Higher BB).

• Immediate support is seen at 2.2907(50%fib) and break below could take the pair towards 2.2809(Lower BB).

Recommendation: Good to sell around 2.3000 with stop loss of 2.3080  and target price of 2.2920