FxWirePro : GBP/NZD slides as risk sentiment lifts kiwi demand

• GBP/NZD dipped on Wednesday as the U.S.-Japan trade deal boosted global risk appetite, increasing demand for risk-sensitive currencies such as the New Zealand dollar.

• New Zealand dollar found support from renewed global trade optimism after the U.S. finalized a major trade deal with Japan and signaled progress in talks with the European Union.

•On the economic front, investors are closely watching Thursday’s flash PMI readings and Friday’s retail sales figures, which are expected to shed light on the pace and resilience of the UK’s economic recovery.

• The data will offer timely indicators of business activity and consumer spending, two critical drivers of overall economic momentum, especially amid lingering concerns around inflation and interest rates

• Meanwhile, Markets are pricing in a 25 basis point rate cut by the Bank of England to 4% on August 7, with expectations that rates could decline further to 3.75% by year-end 2025.

•   Immediate resistance is located at 2.2556(SMA 20), any close above will push the pair towards 2.2685(50% fib).

• Support is seen at 2.2398 (61.8% fib) and break below could take the pair towards 2.2308 (Lower BB )

Recommendation: Good to buy around 2.2430, with stop loss of 2.2260 and target price of 2.2500