FxWirePro: GBP/NZD downtrend slows, but bearish sentiment remains

GBP/NZD initially dipped but recovered some ground as investors digested cooler-than-expected inflation report amid rising Middle East tensions. June CPI showed inflation cooled more than expected, driven largely by...

• GBP/NZD initially dipped but recovered some ground as investors digested cooler-than-expected inflation report amid rising Middle East tensions. • June CPI showed inflation cooled more than expected, driven largely by easing energy prices amid signs of progress in U.S.-Iran peace talks last month. •U.S. CPI rose by a lower-than-expected 3.5% year-over-year in June, down from 4.2% in May, and fell 0.4% monthly largely driven by retreating gasoline prices following the fragile U.S.-Iran ceasefire in June •

Following the CPI report, markets priced an 83.4% chance the Fed holds rates steady in July up from 58.3% on Monday while still expecting at least one 25-bps hike by year-end, per CME's FedWatch. •Investor attention now turns to UK markets is now on Andy Burnham, who is set to replace Keir Starmer as prime minister on July 20, and his choice of finance minister. • Immediate resistance is located at 2.3149(50%fib), any close above will push the pair towards 2.3332(38.2%).

• Immediate support is seen at 2.2985(61.8%fib) and break below could take the pair towards 2.2889(Lower BB). Recommendation: Good to sell around 2.3080 with stop loss of 2.3130 and target price of 2.3000