• GBP/NZD initially gained but gave up ground as investors were cautious surrounding Wednesday’s UK Autumn Budget.
• Reeves will deliver her second annual budget on Wednesday, where she is expected to unveil another round of substantial tax hikestesting her Labour Party’s confidence and drawing the attention of a wary bond market.
• In her 2024 budget, Reeves introduced sharp increases to employers’ social security contributions and the minimum wage, measures that many firms say have contributed to reduced hiring.
• The UK economy has largely been mired in slow growth since the 2007–08 financial crisis, a situation Reeves and Prime Minister Keir Starmer promised to tackle when Labour regained power in 2024.
• Immediate resistance is located at 2.3574(23.6% fib), any close above will push the pair towards 2.3622(Higher BB).
• Immediate support is seen at 2.3326(Daily low) and break below could take the pair towards 2.3208(38.2%fib).
Recommendation: Good to buy around 2.3400 with stop loss of 2.3250 and target price of 2.3550
