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FxWirePro: GBP/NZD uptrend loses momentum but bullish setup remains

• GBP/NZD  edged lower on Tuesday  as oil prices dropped and markets expect geopolitical tensions to remain subdued before US midterm elections.

• Oil prices slipped as investors assessed potential supply disruptions in Saudi Arabia while monitoring expectations for additional diesel supplies from Russia.

• Investors are focusing on Wednesday’s US inflation figures to assess the likely direction of Federal Reserve policy.

• They are pricing in an 80.6% chance that it holds rates steady later this month, up from 51% a month earlier, the CME FedWatch tool showed. 

• Immediate resistance is located at 2.3694(23.6%fib), any close above will push the pair towards 2.3772(Higher BB).

• Immediate support is seen at 2.3490(SMA20) and break below could take the pair towards 2.3461(38.2%fib).

Recommendation: Good to buy around 2.3600, with stop loss of 2.3540 and target price of 2.3680

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