- Fears of no-deal Brexit continue exerting downside pressure on the GBP/USD pair.
- Trade woes, political plays keep the US Dollar (USD) in check.
Not only the UK Prime Minister’s (PM) race but the British politician’s move to block the no-deal Brexit also entertains GBP/USD traders while the quote seesaws near 1.2430 during early Thursday morning.
The Cable benefited from the greenback declines, mainly piled on due to sluggish data and trade worries, amid no change in the UK inflation numbers on Wednesday.
However, traders remain cautious concerning the latest political wave in the UK that is trying to stop the no-deal Brexit. At the House of Lords, British lawmakers voted to turn down the incoming PM’s ability to suspend the Parliament unless Brexit while fearing the frontrunner Boris Johnson’s pledge to leave the EU on October 31.
It was also reported by the BBC that some of the cabinet ministers are ready to resign in a move to support the House of Lord’s motion in the Parliament that will be up for voting on Thursday morning in the UK.
Additionally, Mr. Johnson was assumed to have brokered a private deal with Nigel Farage’s Brexit party to form an electoral pact if he becomes the PM. However, Huffington Post confirmed that the PM hopeful denied any such pact.
In addition to political drama, a five-year report by the UK’s Office for Budget Responsibility (OBR) and June month British Retail Sales will cater the Cable traders’ needs. On the other hand, the US weekly Initial Jobless Claims and Philadelphia Fed Manufacturing Survey might offer clues to the USD players.
Technical Analysis
Unless breaking July 10 low surrounding 1.2440/45, chances of the quote’s pullback to 1.2380 and then to 1.2340 can’t be denied. In a case prices rally past-1.2445, bulls may target Monday’s low close to 1.2510 and the weekly top adjacent to 1.2580.
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