FxWirePro: GBP/NZD rises sharply after Trump’s China remarks

• GBP/NZD surged sharply on Friday as investors responded to Trump’s warning of a “massive increase” in tariffs on China​.

• On Friday, U.S. President Donald Trump announced he is considering a massive increase in tariffs on Chinese imports and said there was no need to meet President Xi Jinping as scheduled in two weeks, sparking buying in the pair.

• The move could reignite a destabilizing tit-for-tat trade war that Washington and Beijing had paused after months of delicate diplomacy earlier this year.

•This week, China tightened export controls on essential rare earth materials and, separately, announced on Friday that U.S. ships will face additional port fees starting October 14.

•The pair hit daily high at 2.0451 and was last trading at 2.0397 at (GMT 18:31). 

• Immediate resistance is located at 2.3355( 23.6% fib), any close above will push the pair towards 2.3446 (Higher BB).

• Immediate support is seen at 2.3414 (38.2% fib) and break below could take the pair towards 2.3089 (SMA 20).

Recommendation: Good to buy around 2.3300, with stop loss of 2.3200and target price of 2.3400