• GBP/NZD strengthened on Tuesday as risk appetite improved on hopes for a Middle East peace deal.
.• Iran and Israel halted attacks after Trump urged both sides to “stop shooting,” though Tehran warned it could resume strikes if Israel continues targeting Hezbollah in Lebanon.
• The pound is seen as a risk-sensitive currency, given Britain's reliance on global trade and capital flows.
• Meanwhile, concerns over inflation, driven by higher energy costs from the ongoing conflict, have led markets to expect a 25-basis-point interest rate increase by the Bank of England in September..
• On the data front, Investors will focus on the upcoming UK Gross Domestic Product (GDP) data release and US inflation figures.
• Immediate resistance is located at 2.3028(Daily high), any close above will push the pair towards 2.3168(23.6%fib).
• Immediate support is seen at 2.2940(50%fib) and break below could take the pair towards 2.2855(SMA 20).
Recommendation: Good to buy around 2.3000 with stop loss of 2.2920 and target price of 2.3100
