- Cable gives away initial gains to the 1.3470/75 band.
- Rumours that Secretary Davis could step down weigh on GBP.
- The pair’s upside appears capped in the 1.3470 region.
The buying interest around the British Pound has evaporated today, forcing GBP/USD to recede from fresh multi-day tops in the 1.3470 region to the current 1.3400 neighbourhood.
GBP/USD looks to Brexit, USD
Cable’s recent upside has been sustained by the renewed and strong selling bias hitting the greenback, particularly after ECB officials hinted at the likeliness that QE could come under discussion at next week’s meeting.
Adding to this week’s positive momentum around the Sterling, Services PMI surprised to the upside in May, coming in at 54.0 from April’s 52.8.
However, rumours that the Brexit Secretary D.Davis could step down appear to be weighing on Cable for the time being, encouraging spot to recede from earlier tops in the 1.3470 area.
GBP/USD levels to consider
As of writing, the pair is losing 0.04% at 1.3408 and a break below 1.3335 (10-day sma) would expose 1.3205 (2018 low May 23) and finally 1.3039 (low Nov.3 2017). On the upside, initial resistance is located at 1.3472 (high Jun.7) seconded by 1.3595 (200-day sma) and then 1.3618 (high May 10).
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