• GBP/NZD surged on Friday as China’s response to U.S. tariffs heightened concerns of a global recession triggered by the escalating trade war.
• China responded to U.S. tariffs by imposing a 34% tariff on all U.S. goods and limiting rare earth exports after the U.S. introduced reciprocal levies on Wednesday.
• The tit-for-tat tariffs between the world’s largest economies intensify the global trade war, risking higher prices, disrupted supply chains, and squeezed corporate profits..
• Immediate resistance is located at 2.3096(38.2%fib), any close above will push the pair towards 2.3335(23.6%fib).
• Immediate support is seen at 2.2923(50%fib) and break below could take the pair towards 2.2742(61.8%fib).
Recommendation: Good to buy around 2.3000, with stop loss of 2.2920, and target price of 2.3300
