- Expectations of a Brexit deadlock break favor the British Pound (GBP) amid broad US Dollar (USD) weakness.
- UK data to gain more importance due to fewer catalysts from the US.
Amid growing support for Boris Johnson to become the next UK PM, GBP/USD trades near 1.2700 during early Wednesday.
While the British lawmakers are united to elect the Prime Minister as soon as possible after the present PM Theresa May’s departure on June 07, ex-Foreign Minister Boris Johnson gains popularity as a front runner for the post.
Not only the US President Donald Trump but some of the top-tier Tories, as said by The Times, have also conveyed their support for Mr. Johnson to become the next PM.
Boris Johnson is a firm supporter of Brexit movement and has recently conveyed readiness to leave the EU on October 31 deadline even without a deal. Being an aggressive Brexit supporter, odds are in favor that the Brexit deadlock will soon be broke.
The pair has been on a positive momentum off-late as comments from the US President Trump during his UK visit and overall greenback weakness pleased buyers.
In addition to political plays, investors may also concentrate on the UK’s May month Markit services PMI. The leading contributor to the British GDP is likely to rise to 50.6 from 50.4 prior.
At the US, fewer catalysts are set for release on the economic calendar but the US-China trade stalemate and developments at today’s US-Mexico talks will be closely observed.
Technical Analysis
Last week’s high near 1.2750 is back in the light for buyers till the quote remains above 1.2700, beyond that February month lows around 1.2775 and 1.2800 can entertain optimists.
Meanwhile, 1.2650 and latest lows near 1.2560 become crucial for bears targeting December 2018 trough around 1.2480.
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