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FxWirePro :GBP/NZD slides as pound hit by surge in UK borrowing costs

• GBP/NZD dipped on Friday after Britain's borrowing surged past official forecasts, further complicating UK fiscal outlook. •Official data on Friday showed public sector borrowing reached £83.8 billion ($113.4 billion) …

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FxWirePro :GBP/NZD slides as pound hit by surge in UK borrowing costs
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• GBP/NZD dipped on Friday after Britain's borrowing surged past official forecasts, further complicating UK fiscal outlook.

•Official data on Friday showed public sector borrowing reached £83.8 billion ($113.4 billion) between April and August, £11.4 billion above the Office for Budget Responsibility’s forecast earlier this year.

•   Britain’s borrowing has exceeded official forecasts underpinning government tax and spending plans, adding to the challenges Finance Minister Rachel Reeves faces ahead of her November budget.

• The pound was one of the worst performers among G10 currencies, mirroring investors' concerns that British finance minister Rachel Reeves may not be able to keep her budget under control.

• Immediate resistance is located at 2.2312(38.2% fib), any close above will push the pair towards 2.3220(Aug 20th high)

• Strong support is seen at 2.2948 (50% fib)and break below could take the pair towards 2.2887(SMA 2-).

Recommendation: Good to sell  around 2.2950  with stop loss of 2.2860 and target price of  2.3160 

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