FxWirePro: GBP/NZD edges lower but bias is bullish

• GBP/NZD edged lower on Monday as ongoing tensions in the Middle East kept investors cautious.

.• Iran and Israel halted attacks after Trump urged both sides to “stop shooting,” though Tehran warned it could resume strikes if Israel continues targeting Hezbollah in Lebanon.

•Crude oil prices were up more than 1%, after retreating from an earlier 5% surge, as renewed Israeli strikes on Iran and attacks in Lebanon dampened hopes for a swift end to the broader conflict.

•A further escalation in Middle East tensions could push oil prices higher, worsening already elevated UK inflation and potentially forcing the BoE toward a faster and steeper rate path.

• Bank of England policymaker Alan Taylor said interest rates at their current level are restrictive for the economy and he sees no need for a rate increase, even with inflation pressures linked to the Iran war.

• Immediate resistance is located at 2.3061(38.2%fib), any close above will push the pair towards 2.3119(Higher BB).

• Immediate support is seen at 2.2928(38.2%fib) and break below could take the pair towards 2.2833(SMA 20).

Recommendation: Good to buy around 2.2950  with stop loss of 2.2860 and target price of 2.3050