- The Upbeat promises from the UK PM hopefuls lure the Cable buyers amid lack of fresh catalysts.
- The British housing, the US employment data will be on the trader’s radar for fresh impulse.
- 1.2600 acts as immediate resistance.
Taking advantage of the US absence and sluggish data from Eurozone, not to forget promises form the UK PM candidates, the GBP/USD pair managed to reverse from 2-week low on Thursday while extending the recovery to 1.2583 by early Friday morning in Asia.
Having initially offered the ability to discuss a trade deal with the EU, the UK Prime Minister (PM) candidates recently started promising lavish spending plans and capacity to counter strong Labour opposition to lure Tory voters.
During their latest appearances at the political hustings, Boris Johnson and Jeremy Hunt made several promises to prove that one of them is superior to the other. While Johnson tried working on the spending plans, Hunt on the other side signalled his capacity to confront the opposition Labour party.
Other than expectations of upbeat days for the UK, the US market’s off and downbeat Eurozone Retail Sales might also have diverted the investors towards the British Pound (GBP).
The UK Halifax House Prices will be the first to entertain the Cable traders whereas the US employment and political/trade headlines could fuel momentum afterwards.
Technical Analysis
Not only 1.2600 round-figure but late-June low around 1.2660 and 1.2735 are also likely to challenge buyers targeting June month top surrounding 1.2785, which in turn may recall 1.2506 on the chart if prices slip beneath recent low near 1.2560.
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