FxWirePro: GBP /NZD range bound short term, primary trend still lower

• GBP/NZD initially gained on Monday but reverse course  as optimism over a potential U.S.-China trade deal lifted risk appetite.

• Risk appetite was boosted as optimism over a potential China-U.S. trade deal grew, with investors hopeful that progress in talks could ease global trade tensions..

• Top Chinese and U.S. economic officials reached a preliminary trade deal framework on Sunday, ahead of a meeting between Presidents Donald Trump and Xi Jinping in South Korea on Thursday.

•A trade deal would suspend higher U.S. tariffs and China’s export controls on rare earths, easing investor concerns over tensions between the world’s two largest economies.

• Central banks are set to drive market direction later this week, with the Federal Reserve and Bank of Canada expected to cut rates on Wednesday, while the European Central Bank and Bank of Japan are likely to hold steady on Thursday.

• Immediate resistance is located at 2.3156(38.2%fib), any close above will push the pair towards 2.3232(SMA 20).

• Immediate support is seen at 2.3058(Daily low) and break below could take the pair towards 2.2938(Lower BB).

Recommendation: Good to sell around 2.3120, with stop loss of 2.3250, and target price of 2.3050