• GBP/NZD retreated slightly on Tuesday as easing of geopolitical tensions helped drive a bid for riskier assets like kiwi dollar.
• The ceasefire agreement between Israel and Iran, brokered by U.S. President Donald Trump, helped calm global markets, boosting risk sentiment and encouraging flows into higher-yielding, risk-sensitive currencies like the kiwi.
• The focus now shifts to whether the ceasefire between Israel and Iran can hold, as markets remain cautious about the potential for renewed tensions despite the initial de-escalation.
• Technical signals are bullish as RSI is at 57, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 2.0700 (50%fib), any close above will push the pair towards 2.27730 (Higher BB).
• Strong support is seen at 2. 2514 (50%fib) and break below could take the pair towards 2.2480 (20 SMA).
Recommendation: Good to buy on dips around 2.2650 with stop loss of 2.2550 and target price of 2.2750
