• GBP/NZD traded in narrow range on Friday as investors focus on Middle East peace optimism, easing energy cost concerns.
• GBP/NZD showed little reaction to data that showed the British economy may be starting to feel the impact of the Iran war.
• The UK economy contracted by 0.1% in April, its first monthly decline since August, as war-related cancellations of major sporting events weighed on the entertainment sector, the ONS said.
• Markets are focused on central bank meetings next week, with both the Federal Reserve and Bank of England expected to hold rates steady.
•Expectations for the BoE remain tilted toward prolonged policy stability into 2026, with only a minority anticipating hikes..
• Immediate resistance is located at 2.3064 (38.2%fib), any close above will push the pair towards 2.3226(23.6%fib).
• Immediate support is seen at 2.2944 (50%fib) and break below could take the pair towards 2.2879 (SMA20).
Recommendation: Good to buy around 2.2990, with stop loss of 2.2880, and target price of 2.3150
