• GBP/NZD rose on Thursday as sterling bulls find temporary relief as gilts yields pulled back from recent gains.
• UK 30-year gilt yields briefly hit their highest since 1998 this week amid a global selloff in long-dated debt.
• Bank of England Governor Andrew Bailey on Wednesday suggested that British interest rates would continue to fall, but there was far less certainty about the pace of cuts.
• UK construction activity fell for the eighth straight month in August, marking the longest slump since 2020 amid weaker sector optimism, PMI data showed. UK construction PMI rose to 45.5 in August from July’s five-year low of 44.3.
• Immediate resistance is located at 2.3049(38.2%fib), any close above will push the pair towards 2.2982 (20 SMA).
• Strong support is seen at 2.2904(50%fib) and break below could take the pair towards 2.2767(61.8%fib).
Recommendation: Good to buy around 2.2970 with stop loss of 2.2900 and target price of 2.3100
