FxWirePro: GBP/NZD uptrend loses steam, remains on bearish path

• GBP/NZD  recovered ground on Friday   as investors digested corporate updates ‌as well as Federal Reserve Chair Kevin Warsh's comments at the Jackson Hole symposium.

· Warsh said the U.S. central bank will “have work to do” if policymakers lack confidence that inflation is moving toward 2%, remarks that markets interpreted as signaling possible interest-rate hikes to contain price pressures.

· Warsh’s remarks followed concerns from three Fed officials about persistently above-target inflation. However, Boston Fed President Susan Collins described the latest inflation data as “mixed” while maintaining her view that disinflation is progressing gradually.

·  Following the comments, market expectations for a September Fed rate hike increased to 55.7% from 35.4% on Thursday, according to CME Group’s FedWatch tool.

•Meanwhile, attention next week will turn to Parliament’s return, with markets watching for clues on how the Andy Burnham administration plans to fund its ambitious policies ahead of the October budget.

• Immediate resistance is located at 2.2908(SMA20), any close above will push the pair towards 2.2986(50%fib).

• Immediate support is seen at 2.2753(38.2%fib) and break below could take the pair towards 2.2698(Lower BB).

Recommendation: Good to sell around 2.2890 , with stop loss of 2.2950 and target price of 2.2760