• GBP/NZD dipped on Thursday as ongoing UK political tensions kept bearish pressure on the pair.
• Prime Minister Keir Starmer’s future hung in the balance after Health Minister Wes Streeting resigned and called for his removal following Labour’s heavy local election losses.
• Investors fear a potential successor to Keir Starmer could push for higher spending, adding pressure to Britain’s strained finances.
• On the data front, Britain’s economy unexpectedly grew in March, suggesting it was more resilient during the escalating Iran war than feared, though economists warned seasonal distortions may have boosted the figures.
• UK GDP rose 0.3% m/m in March, according to the ONS, beating expectations for a 0.2% contraction.
• Immediate resistance is located at 2.2858(50%fib), any close above will push the pair towards 2.2908 (SMA 20).
• Immediate support is seen at 2.2644(38.2%fib) and break below could take the pair towards 2.2594(Lower BB).
Recommendation: Good to sell around 2.2700 with stop loss of 2.2780 and target price of 2.2580
