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FxWirePro: GBP/NZD lose traction, cannot add to overnight gains

• GBP/NZD retreated on Friday as heightened risk aversion and geopolitical jitters weighed on the pair.

• China and the U.S. clashed again on trade overnight, after Beijing dismissed U.S. pressure and accused Washington of exaggerating concerns over its rare earth export restrictions.

• The latest flare-up in U.S.-China tensions adds to fears of a prolonged trade standoff, raising concerns over potential disruptions to global supply chains and investor sentiment.

• Investor focus is now shifting to next week’s inflation data, which could prove pivotal in determining whether the Bank of England cuts rates in November, December, or waits until early 2026.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 68 bullish, daily momentum studies  5, 10 and 21 DMAs are trending  up.

• Immediate resistance is located at 2.3508(23.6%fib), any close above will push the pair towards 2.3587(Higher BB).

• Immediate support is seen at 2.3344 (Daily low) and break below could take the pair towards 2.3209(SMA20).

Recommendation: Good to buy around 2.3410, with stop loss of 2.3330, and target price of 2.3560

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