FxWirePro: GBP/NZD slips on gilt selloff and political uncertainty

• GBP/NZD slipped lower as the British pound weakened following Prime Minister Keir Starmer’s announcement of reduced welfare cuts, reigniting concerns over the UK’s fiscal stability

• Market sentiment was  dented by a sharp spike in UK gilt yields, reflecting fears of looser fiscal policy, which in turn added pressure to sterling across the board.

• The policy shift has triggered investor unease over the UK's long-term fiscal discipline, particularly as government borrowing is expected to rise.

• Meanwhile, Bank of England policymaker Alan Taylor warned on Wednesday that the UK’s 'soft landing' scenario is now under threat, citing recent economic data that, in his view, supports five interest rate cuts in 2025 up from the four previously anticipated

• His comments added to growing concerns about the health of the UK economy and reinforced expectations of a more aggressive easing cycle by the central bank.

•  Immediate resistance is located at 2.2597 (Daily high), any close above will push the pair towards 2.2698(38.2% fib).

• Strong support is seen at 2.2384(50% fib) and break below could take the pair towards 2.2202(Lower BB).

Recommendation: Good to buy   around 2.2360, with stop loss of 2.2260 and target price of 2.2480