FxWirePro: GBP/NZD pares gains after soft UK economic data

• GBP/NZD initially gained  but gave up ground as investors reacted to the latest UK GDP figures which   showed no growth.

• Britain’s economy showed no growth in July as a steep fall in factory output offset gains elsewhere. The figures, which met forecasts for a sluggish start to the second half of 2025, nevertheless underscore the challenges facing the government as it prepares its November budget.

• UK GDP was flat in July following a 0.4% rise in June, the ONS reported, as manufacturing output accounting for 9% of the economy   fell 1.3% on the month.

• Meanwhile, The BoE is expected to hold its benchmark rate on September 18, following a split decision in August that lowered it to 4%.

• Technical are bearish, daily RSI is negative at 47, daily momentum studies  9 and 10 DMAs are trending down.

• Immediate resistance is located at 2.2826(Sep 1th high), any close above will push the pair towards 2.2913(38.2%fib)

• Support is seen at 2.2696 (50%fib) and break below could take the pair towards 2.2636 (Lower BB).

Recommendation: Good to sell  around 2.2800 with stop loss of 2.2900 and target price of 2.2680