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FxWirePro: GBP/NZD gains some upside momentum, but outlook is bearish

• GBP/NZD firmed on Monday   as investors turning their attention to the UK’s preliminary Q2 GDP figures due later this week.

• UK economic growth is forecast to ease to 0.4% in Q2 from 0.6% in Q1, pointing to a moderation in the pace of expansion.

• On a monthly basis, UK GDP is expected to contract 0.1% in June, reversing the 0.1% growth recorded in May.

•The BoE has maintained a cautious stance, awaiting developments in the Middle East rather than tightening policy, while the ECB increased rates in June.

• Investors are now pricing in one Bank of England rate hike by year-end, with a second hike fully priced in by September next year.

• Immediate resistance is located at 2.2978(38.2%fib), any close above will push the pair towards 2.3085(SMA20).

• Immediate support is seen at 2.2870(38.2%fib) and break below could take the pair towards 2.7727(Lower BB).

Recommendation: Good to sell around 2.3080 , with stop loss of 2.3180 and target price of 2.3000

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