• GBP/NZD eased slightly on Monday as investors across the UK and European Union were also spooked by the unexpected resignation of France’s new prime minister.
•Prime Minister Sébastien Lecornu stepped down only hours after unveiling his cabinet to President Emmanuel Macron, marking the shortest-lived government in modern French history.
• Since the establishment of the Fifth Republic in 1958, France has rarely experienced a political crisis as profound as the one unfolding now.
•The 1958 constitution was designed to ensure stable governance by creating a powerful and highly centralised president endowed with a strong majority in parliament.
•British construction activity contracted for the ninth consecutive month in September. The S&P Global Purchasing Managers’ Index for the sector edged up to a three-month high of 46.2 from 45.5 in August but stayed well below the 50 mark that separates expansion from contraction.
• Immediate resistance is located at 2.3150(Sep 18th high), any close above will push the pair towards 2.3247(23.6%fib).
• Immediate support is seen at 2.3065 (38.2%fib) and break below could take the pair towards 2.3019(SMA 20).
Recommendation: Good to buy around 2.3050, with stop loss of 2.2950, and target price of 2.3120
