FxWirePro: GBP/NZD remains weak, eyes 38.2%fib support

• GBP/NZD dipped on Tuesday as investors shifted their attention to the upcoming Kansas City Fed Jackson Hole Economic Symposium.

• Market participants will closely watch Warsh’s remarks for clues on the Federal Reserve’s policy direction for the rest of the year. Futures markets are pricing in more than a 60% probability of a 25-basis-point rate hike at the October FOMC meeting.

• Traders will closely scrutinize Warsh’s comments for signals on the U.S. inflation and economic growth outlook, which could shape expectations for monetary policy.

• Meanwhile, markets largely shrugged off Monday’s announcement of tougher U.S. sanctions on Iran, with only a limited reaction in currency markets.

• Immediate resistance is located at 2.2925(SMA 20), any close above will push the pair towards 2.2959(50%fib).

• Immediate support is seen at 2.2780(Lower BB) and break below could take the pair towards 2.2732(38.2%fib).

Recommendation: Good to sell around 2.2840 , with stop loss of 2.2950 and target price of 2.2700