Risk currencies were buoyant Monday continuing the run from late week, the New Zealand Dollar (NZD) pushed through to 0.5190 (1.9260) against the British Pound (GBP) before dropping back to 0.5160 (1.9375) early Tuesday. The Pound has been bid overnight on the back of US Dollar repricing of US Federal rate hike expectations. The UK government announced a financial aid package to counteract the massive rises in the cost of living recently. Boris Johnson introduced a “tax on oil profits” which is expected to raise around 5B over the year to help cash payments to millions. 8M of the countries lowest income earners will receive GBP 650.00 as a one-off payment. Resistance at 0.5195 (1.9250) the 50% fib retracement area should hold for a while with predictions of a retest at 0.5100 (1.9600) over the coming days.
Current Level: 0.5174 (1.9327)
Resistance: 0.5250 (1.9640)
Support: 0.5090 (1.9050)
Last Weeks Range: 0.5114-0.5194 (1.9250-1.9553)