FxWirePro: GBP/NZD downside pressure builds, key support level in focus

• GBP/NZD fell on Tuesday as investors assessed UK political crisis and growing expectations of further rate cuts by BOE.

• Due to the aftermath from the Jeffrey Epstein incident, Scottish Labour leader Anas Sarwar called on UK Prime Minister Keir Starmer to resign, posing a serious challenge to his leadership.

•British Prime Minister Keir Starmer rejected calls to resign, including from his party’s Scottish leader, vowing to continue leading after his appointment of Peter Mandelson as U.S. ambassador sparked a government crisis.

• The Bank of England kept interest rates on hold last week, but only after an unexpectedly narrow 5-4 vote, and said borrowing costs are likely to fall if inflation eases further.

• The release of December GDP and January retail sales figures this week could help indicate the likely course of monetary policy.

• Immediate resistance is located at 2.2665(Feb 10th high), any close above will push the pair towards 2.2749(38.2%fib).

• Immediate support is seen at 2.2556(23.6%fib) and break below could take the pair towards 2.2412(Lower BB).

Recommendation: Good to sell around 2.2580 with stop loss of 2.2650 and target price of 2.2500