GBP/USD recovers to 1.2530 amid mixed political clues from UK
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GBP/USD recovers to 1.2530 amid mixed political clues from UK

  • GBP/USD recovers on the hope of soft-Brexit following a drop to multi-month low on Friday
  • Tories outline for “alternative parliament” to stop no-deal Brexit.
  • Former Brexit minister Dominic Raab  threatens to suspend the parliament if failing to get support for a no-deal exit.

With key Tory members stepping forward to challenge the UK Prime Minister (PM) candidate Boris Johnson’s October 31 deadline, renewed optimism surrounding the soft Brexit helps the GBP/USD to recover to 1.2530 during early Monday.

Previously, former Brexit Minister Dominic Raab threatened to suspend the UK Parliaments if he falls short of support for a no-deal exit from the EU.

Knowing that the PM can push the motion, another Troy Member of the Parliament (MP) Rory Stewart suggests “alternative parliament” to stop a no-deal Brexit.

However, the UK PM frontrunner Boris Johnson remains firm in his pledge to crash out of the EU on October 31. The UK Express quoted Mr. Johnson’s comments during the Daily Mail interview where he said that Tories will ‘die and face political extinction’ if they keep holding Brexit back.

Elsewhere, the US-China trade truce is again in doubt and the US President Donald Trump continues to criticize the Federal Reserve’s tight monetary policy.

While nothing major is up for release on the economic calendar, news headlines concerning the UK politics are likely to be the key driver for the Cable.

Technical Analysis

Unless breaking December 2018 low surrounding 1.2480, the current year bottom near 1.2440 and the 1.2400 round-figure can keep teasing sellers while 1.2610 and June 27 low near 1.2660 seem the key upside resistances to watch during the pair’s further increase.

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