- A slew of downbeat activity gauges and political uncertainty at home continues to haunt the GBP/USD pair.
- US holiday, lack of data result in short covering moves.
While rest of the major currencies has been cheering the strength against the US Dollar (USD), the British Pound (GBP) finally gets a chance to rise versus the greenback as the GBP/USD pair takes the bids to 1.2580 during early Thursday.
June month activity data from the UK has been supportive of the recently dovish comments from the Bank of England policymakers, including Governor Mark Carney, which in turn weigh on the UK currency off-late.
Adding to the Cable’s downside could be rising uncertainty surrounding the Brexit as the Prime Minister hopefuls keep changing their promises while supporting the hard exit at the end.
With this, the US Dollar’s (USD) weakness on the back of downbeat data and rising odds for frequent rate cuts at the US Federal Reserve remains largely ignored.
Investors have no major data/events scheduled for release as the US is on holiday and the UK has recently emptied its economic calendar. However, the UK PM candidates and global trade developments can continue entertaining momentum traders.
Technical Analysis
Despite bouncing off the May month low of 1.2560, the Cable isn’t immune to the further downside unless clearing 50-day exponential moving average (50-day EMA) level of 1.2748. As a result, chances of the pair’s revisit to 1.2560 and June month bottom surrounding 1.2506 remains on the card.
Meanwhile, 1.2660/65 may offer immediate resistance to the pair ahead of highlighting short-term exponential moving average (EMA) level.
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