FxWirePro: GBP/NZD slips as Middle East tensions fuel risk aversion

• GBP/NZD dipped on Monday s escalating tensions in the Middle East pressured the currency..

• The US and Iran exchanged fresh missile strikes over the weekend amid ongoing disputes over shipping through the Strait of Hormuz, driving oil prices higher and reinforcing expectations of interest-rate hikes to curb inflation.

•Oil prices surged around 6% amid fears of supply disruptions, reinforcing concerns that higher energy costs could keep global inflation elevated

• The rise in oil prices also pushed UK gilt yields higher, adding to worries over Britain's fiscal outlook and weighing on the pound.

•Investor attention now turns to a busy economic calendar on Tuesday, including the release of U.S. Consumer Price Index (CPI) data, Federal Reserve Chair Kevin Warsh's testimony before Congress, and UK Finance Minister Rachel Reeves' Mansion House speech..

• Immediate resistance is located at 2.3290(38.2%fib), any close above will push the pair towards 2.3400(Psychological level).

• Immediate support is seen at 2.3121(38.2%fib) and break below could take the pair towards 2.3002(Lower BB).

Recommendation: Good to sell around 2.3230  with stop loss of 2.3300  and target price of 2.3100