FxWirePro: GBP/NZD reverses course, bias back to downside

• GBP/NZD dipped  on Tuesday  as investors braced for the outcome of a standoff between the U.S. and Iran.

• U.S. President Donald Trump issued Iran an ultimatum, threatening to destroy every bridge and power plant in the country if Iran does not reopen the Strait of Hormuz by the end of Tuesday.

•Iran had said that it would retaliate against U.S. allies in the Gulf, whose desert cities would be uninhabitable without power or water.

• Investors have been laser-focused on the U.S.-Israeli war with Iran, which is now in its sixth week, as wild volatility in oil prices increased concernsabout inflation and a potential global economic slowdown..

 • On the data front, Britain’s services firms reported the sharpest monthly rise in costs since 2021 in March, driven by higher energy and transport prices, highlighting inflation risks from the Iran war. 

• The S&P Global Services PMI fell to 50.5 in March from 53.9 in February, below the initial 51.2 estimate and marking its lowest level in 11 months.

• Immediate resistance is located at 2.2352(23.6%fib), any close above will push the pair towards 2.3278(Higher BB).

• Immediate support is seen at 2.3038(38.2%fib) and break below could take the pair towards 2.2991(SMA20).

Recommendation: Good to sell around 2.3100 with stop loss of 2.3140 and target price of 2.3030