• GBP/NZD pair recovered some ground on Friday as investor attention shifted toward the upcoming UK budget and next week’s Bank of England policy meeting.
• British Finance Minister Rachel Reeves, facing political pressure this week over a rental dispute, is set to present her budget in late November.
•Reeves has limited fiscal headroom under her own budgetary rules, leaving little room to manoeuvre as she seeks to keep Britain’s public finances on track.
•Mounting fiscal challenges have intensified fears that Chancellor Reeves might have to deviate from her established fiscal framework, potentially weakening household sentiment.
• Immediate resistance is located at 2.3128 (38.2%fib), any close above will push the pair towards 2.3194 (SMA 20).
• Strong support is seen at 2.2834(50%fib) and break below could take the pair towards 2.2776( (Lower BB)
Recommendation: Good to sell around 2.3000 with stop loss of 2.3080 and target price of 2.2900
