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  • Politics in play amid no major data, holidays at the US and the UK.
  • Market reaction to the latest news will be observed during the active sessions to come.

With one after the other British lawmakers filing their nominations to replace PM May, together with the Brexit party’s victory in the EU election, political plays at the UK have been highlighted off-late. However, the GBP/USD pair showed little reaction as the UK markets were off on Monday. The quote trades near 1.2680 during early Tuesday.

While the rise of eurosceptics and Brexit hardliners during the EU general election questioned market sentiment yesterday, closure of the UK markets due to Spring Bank Holiday confined investor reaction to the news.

On the Brexit front, speculations concerning the no-deal Brexit were spreading faster after Nigel Farage’s newly formed Brexit Party gained command.

Traders now await the British open to observe how the latest news reports get into the action. Additionally, second-tier data/events from the UK and the US might also entertain momentum traders during the rest of the day.

Technical Analysis

The 1.2760/70 area, including February month low and a descending triangle stretched since early-May, continues to challenge buyers targeting 1.2800 round-figure. As a result, 1.2600, 1.2480 and January 2018 low near 1.2430 could be found on the bears’ list.