• GBP/NZD edged lower as investors are eyeing the Thursday employment report, as investors seek clues on the Bank of England’s next policy direction.
• Markets are paying close attention to the employment report scheduled for release on Thursday, as it is expected to offer critical insights into the state of the UK labour market.
• Britain’s labour market is showing further signs of slowing, according to surveys published on Wednesday, which highlighted below-inflation wage growth and a decline in job vacancies—particularly for graduate-level positions.
• BoE Governor Bailey reiterated openness to further cuts if labor market weakens, highlighting economic slack and elevated inflation.
•Financial markets are betting on the BoE cutting rates by a quarter of a percentage point to 4% when it announces its next move on August 7, and see rates most likely falling to 3.75% by the end of 2025..
• Immediate resistance is located at 2.2690(61.8%fib), any close above will push the pair towards 2.2803(Higher BB)
• Support is seen at 2.2461 (38.2%fib) and break below could take the pair towards 2.2391 (Lower BB).
Recommendation: Good to sell around 2.2580 with stop loss of 2.2650 and target price of 2.2500
