FxWirePro: GBP/NZD range to extend until there is game changing news

• GBP/NZD   held steady on Monday as the New Zealand dollar continued to weaken, with markets increasingly pricing in the likelihood of larger rate cuts by the RBNZ.

• Market participants are awaiting the release of the UK’s Q2 current account deficit and final Q2 GDP data on Tuesday at 0600 GMT.

• Yields on 30-year UK government bonds fell on Monday after touching 5.583% on Friday, a three-week high. Earlier in September, they had climbed to 5.752%, the highest level since the late 1990s.

• Meanwhile,British finance minister Rachel Reeves told the BBC on Monday, ahead of her speech at the Labour Party conference, that tough decisions would be required to uphold her fiscal rules.

• Immediate resistance is located at 2.3295 (Higher BB ), any close above will push the pair towards 2.3345 (23.6%fib).

• Strong support is seen at 2.3170(Sep 29th low) and break below could take the pair towards 2.325 (38.2%fib).

Recommendation: Good to buy   around 2.3250 , with stop loss of 2.3150 and target price of 2.3350