• GBP/NZD edged lower as investors digested the Bank of England’s half-yearly financial stability report and evaluated the potential impact of ongoing trade tensions on global economic growth..
• Global sentiment turned cautious after U.S. President Donald Trump escalated his trade war, announcing a 50% tariff on imported copper and plans for new levies on semiconductors and pharmaceuticals.
• Trump said trade-related announcements involving "a minimum of 7 countries" would come Wednesday, just a day after warning 14 nations of steep tariff hikes effective from a new deadline of August 1..
• Traders are now turning their attention to U.S. jobless claims due Thursday, followed by key macro releases on Friday including UK GDP figures and the U.S. Consumer Price Index (CPI), both of which could significantly influence interest rate expectations on both sides of the Atlantic.
• Immediate resistance is located at 2.2778(Higher BB), any close above will push the pair towards 2.2878(38.2%fib)
• Support is seen at 2.2513 (50%fib) and break below could take the pair towards 2.2384 (July 3rd low).
Recommendation: Good to buy around 2.2610 with stop loss of 2.2540 and target price of 2.2720
