• GBP/NZD edge d lower on Monday as President Donald Trump threatened to impose tariffs on steel and aluminum imports.
• Trump is expected to announce 25% tariffs on all steel and aluminum imports later on Monday.
• Canada is the largest source of U.S. steel imports and the top supplier of primary aluminum, providing 79% of total aluminum imports in the first 11 months of 2024.
• Trump is also expected to announce reciprocal tariffs on Tuesday or Wednesday, effective almost immediately, applying them to all countries and matching the tariffs imposed by each.
• Technical are bearish, daily RSI is negative at 46, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.272(38.2%fib ), any close above will push the pair 2.2180(23.6%fib).
• Strong support is seen at 2.1857(50%fib) and break below could take the pair towards 2.1662
(61.8%fib)
Recommendation: Good to sell around 2.2053 with stop loss of 2.2200 and target price of 2.1850