• GBP/NZD dipped on Monday as investors kept a close watch on U.S. trade talks ahead of the looming July tariff deadline.
•The U.S. and China resolved rare earth shipment issues last week, boosting hopes for renewed talks. Meanwhile, Canada scrapped its digital tax on U.S. tech firms Sunday to revive stalled negotiations with Washington.
•Treasury Secretary Scott Bessent warned that countries may still face steep tariffs on July 9 despite ongoing talks, noting that any extensions would be at Trump’s discretion.
• With the July tariff deadline fast approaching, markets were on edge, seeking any signs of progress that might ease trade tensions.
• On the data front, Britain’s economy grew 0.7% in Q1 2025, its fastest pace in a year, driven by a surge in home buying and ramped-up manufacturing activity ahead of anticipated U.S. tariff hikes..
• The figure confirmed preliminary estimates, marking the strongest quarterly growth since early 2024, according to the ONS..
• Immediate resistance is located at 2.2682(Daily high), any close above will push the pair towards 2.2752(38.2%fib)
• Support is seen at 2.2498 (50%fib) and break below could take the pair towards 2.2378 (Jan 3rd low).
Recommendation: Good to buy around 2.2500 with stop loss of 2.2400 and target price of 2.2590
