FxWirePro: GBP/NZD remains weak, eyes 2.2500 level

• GBP/NZD fell on Monday as traders reacted to Prime Minister Keir Starmer’s political crisis and growing expectations of further rate cuts by BOE.

• Starmer’s top aide Morgan McSweeney resigned Sunday over Peter Mandelson’s appointment, while communications chief Tim Allan quit Monday to allow a new No. 10 team.

• The Bank of England kept interest rates on hold last week, but only after an unexpectedly narrow 5-4 vote, and said borrowing costs are likely to fall if inflation eases further.

•Data this week, including January retail sales and December GDP figures, could give more clues on monetary policy.

• Immediate resistance is located at 2.2793 (38.2%fib), any close above will push the pair towards 2.2887(SMA 20).

• Immediate support is seen at 2.2575(23.6%fib) and break below could take the pair towards 2.2412(Lower BB).

Recommendation: Good to sell around 2.2650 with stop loss of 2.2750 and target price of 2.2500