“¢ UK political developments keep the GBP bulls on the back-foot.
“¢ Escalating US-China trade tensions benefits USD’s relative safe-haven appeal.
The GBP/USD pair extended its consolidative price action and seesawed between tepid gains/minor losses, within a narrow trading range below the 1.3300 handle.
The latest UK political drama, wherein the PM Theresa May could face a formal leadership challenge in wake of the recent resignations by pro-Brexit ministers, kept the GBP bulls on the defensive.
Meanwhile, US-China trade tensions escalated further after the Trump administration threatened to levy tariffs on an additional $200 billion worth of Chinese imports. The resultant risk-off mood boosted the US Dollar‘s relative safe-haven appeal against the British Pound and further collaborated towards keeping a lid on any meaningful up-move.
Moreover, traders also seemed reluctant to place any aggressive bets and preferred to wait on sideline ahead of the BoE Governor Mark Carney‘s scheduled speech, which has eventually led to a range-bound/subdued price action through the early European session.
Technical Analysis
From a technical perspective, the recent price action over the past 24-hours or so clearly suggests indecision over the pair’s near-term trajectory. Hence, it would be prudent to wait for a decisive move before committing to the pair’s next leg of directional move.
Spot Rate: 1.3275
Daily High: 1.3285
Daily Low: 1.3249
Trend: Sideways
Resistance
R1: 1.3301 (overnight swing high)
R2: 1.3346 (R2 daily pivot-point)
R3: 1.3363 (over 3-week tops set on Monday)
Support
S1: 1.3249 (current day swing low)
S2: 1.3231 (S1 daily pivot-point)
S3: 1.3201 (10-day SMA)
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