•GBP/NZD dipped on Monday as investors pared positions driven by market unrest following the Trump administration's renewed attacks on the U.S. Federal Reserve chair.
• Powell said the Trump administration threatened him with criminal charges and subpoenas over his congressional testimony, calling it a pretext to push the Fed toward rate cuts.
• The developments signal a major escalation in the ongoing clash between Powell and Trump, which started in 2018 during his initial years as Fed chair.
•Meanwhile, market participants kept an eye on the Reserve Bank of New Zealand’s potential rate moves, ahead of the Q4 CPI data due next week.
• Immediate resistance is located at 2.3494(Higher BB), any close above will push the pair towards 2.3545(23.6%fib).
• Immediate support is seen at 2.3296 (38.2%fib) and break below could take the pair towards 2.3261(SMA 20).
Recommendation: Good to buy around 2.3320, with stop loss of 2.3240 and target price of 2.3400
